Hanwha Total Petrochemical, a 50/50 joint venture between Total and Hanwha has decided to expand its Daesan integrated refining and petrochemical complex in South Korea with an investment of approximately $500 million. The planned expansion will increase polypropylene capacity by close to 60% to 1.1 million tonnes per year by the end of 2020. Simultaneously, ethylene capacity will increase by 10% to 1.5 million tonnes.
This expansion project is in addition to the ongoing investments totaling $750 million to increase the plan’s ethylene production capacity by 30% to 1.4 million tonnes per year by mid-2019 and also to expand polyethylene production capacity by 50% to 1.1 million tonnes by end-2019.
Propane feedstock, abundantly available due to the shale gas revolution in the United States, has lower cost. The new investments are being made to take the price advantage of propane feedstock. The new investment will enable Daesan to capture margins across the propylene-polypropylene value chain, as is the case of the ethylene-polyethylene value chain.
The complex will be able to meet the local demand and supply the fast-growing Asian market with the help of additional production of high-value-added polymers.
Bernard Pinatel, President, Refining & Chemicals at Total, said, “This new investment in Daesan is fully in line with our strategy of growth in petrochemicals to meet global demand, focusing investments on our world-class facilities and leveraging competitively priced feedstock. This polypropylene project complements our offering of high-value-added polymers to the fast-growing Asian market.”
Daesan Refining and Petrochemical Complex is one of the six world-class integrated complexes of Total. It comprises a flexible condensate splitter, a competitive steam cracker and units producing polymers, styrene and aromatics.