The Daesan integrated refining and petrochemicals complex in South Korea, owned by Hanwha Total Petrochemical, has started its new ethylene production capacities. With a USD 450 million investment, the site can now produce 1.4 million tonnes per 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 USD 300 million are being invested to expand polyethylene production capacity by 50% to 1.1 million tonnes per year by the end of 2019, and nearly USD 500 million are being invested to increase polypropylene production capacity by close to 60% to 1.1 million tonnes per year by 2021.
The three projects take advantage of abundant, cost-advantaged propane feedstock from the shale gas revolution in the United States. With these investments, the Daesan facility will be in a position to capture margins across the ethylene-polyethylene and propylene-polypropylene 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 channelling our investments into our world-class complexes and leveraging cost-advantaged feedstock,” says Bernard Pinatel, President, Refining & Chemicals, Total.