The Daesan integrated refining and petrochemicals complex in South Korea, owned by Hanwha Total Petrochemical, a 50-50 joint venture between French firm Total and South Korean conglomerate Hanwha Group, has started its new ethylene production capacities. With a US$450 million investment, the site can now produce 1.4 million tonnes/year of ethylene, an increase of 30%.
This project was launched in April 2017 and is the first in a series of three at the complex. More than US$300 million os being invested to expand PE production capacity by 50% to 1.1 million tonnes/year by the end of 2019, and nearly US$500 million invested to increase PP production capacity by close to 60% to 1.1 million tonnes/year by 2021.
The three projects take advantage of abundant, cost-advantaged propane feedstock from the shale gas revolution in the US. With these investments, the Daesan facility will be in a position to capture margins across the ethylene-PE and propylene-PP value chains. The additional production capacity will help meet rapidly growing Asian demand.
“These investments and today’s successful start-up of the first project reflect our strategy of meeting growing global demand for petrochemicals by channeling our investments into our world-class complexes and leveraging cost-advantaged feedstock,” said Bernard Pinatel, President, Refining & Chemicals, Total.
Daesan is one of Total’s six world-class integrated complexes and a strategic asset for both shareholders. It comprises a flexible condensate splitter, a competitive steam cracker and units producing polymers, styrene and aromatics.