The 50-50 joint venture company between Total and Hanwha known as Hanwha total petrochemical is investing around $500 million to expand its Daesan integrated refining and petrochemical complex in South Korea. By end of 2020 the expansion is anticipated to increase the annual ethylene capacity by 10% to 1.5 million tones and polypropylene capacity by almost 60% to 1.1 million tones.
The firm has been making series of investments and the recent project is a part of it. The total investments sum up to $750 million. The plant will utilize propane feedstock as a raw material to produce polyethylene and ethylene. The expansion of the plant will positively impact the propylene-polypropylene market and help capture the margins in the value chain.
The expansion of the production will also help balance the domestic demand and supply in Asia. As per Bernard Pinatel, Total Refining & Chemicals’ president, the plan of expansion in Daesan is going hand in hand strategy to grow petrochemicals to meet the global demand. The coming up polypropylene project will support the existing product profile of high-value-added polymers in the growing Asian market.
Total has six integrated complexes and has a steam cracker, flexible condensate splitter and units that produce polymers, styrene and aromatics. The Desan refining and petrochemical complex is one of those.
About Total – It is a French multinational firm. It is considered to be one of the major oils and gas companies. Its major business includes entire oil and gas chain, from natural gas and crude oil exploration to refining, power generation, transportation and others. Total is also a major chemical manufacturer in the market.
— Vasundhra Singh,
Assistant Research Executive,