Hanwha-Total JV Hikes Ethylene Output
Hanwha Total Petrochemical, the 50:50 joint venture between South Korean conglomerate Hanwha and French energy group Total, will spend $450 million to increase ethylene production at Daesan.
The expansion, which will raise the cracker’s capacity by 30% to 1.4 million t/y, will significantly increase the site’s flexibility, enabling it to process propane feedstock, which the company said is abundantly available and competitively priced as a result of US shale developments. The project is scheduled to complete by mid-2019.
The additional output will meet local demand as well as supply the fast-growing Chinese market, which imports a significant portion of its ethylene requirements.
“This project is part of our strategy to invest in world-class integrated platforms to develop petrochemicals based on competitive feedstock and targeting high-growth markets,” said Bernard Pinatel, President of Total Refining & Chemicals “The investment reflects the strong partnership with Hanwha and will contribute to the growth of our refining & petrochemicals cash flows.
Daesan is one of Total’s six integrated platforms and a strategic asset for Hanwha. The site, which is comprised of a highly flexible condensate splitter, steam cracker and units for polymers, styrene and aromatics, generated a net result of nearly $1 billion in 2016.