French oil giant Total has announced that the its joint venture with South Korea's Hanwha, Hanwha Total Petrochemical, will invest US$450 million to expand its Daesan refining & petrochemicals integrated platform.
The planned investment will increase the site’s ethylene capacity by 30 per cent to 1.4 million tons per year. The extension will also significantly increase the site’s flexibility, enabling it to process competitively priced propane feedstock which is now more freely available due to the shale gas revolution in the United States.
The expansion project is set to be completed by mid-2019.
“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. The investment reflects the strong partnership with Hanwha and will contribute to the growth of our Refining & Petrochemicals cash flows,” said Bernard Pinatel, President Refining & Chemicals of Total.
Total said in a statement that the additional ethylene production will meet local demand and also supply the nearby fast-growing Chinese market which imports a significant part of its ethylene requirements.
Daesan is one of Total’s six world-class integrated platforms and a strategic asset for Hanwha. This site which is comprised of a highly flexible condensate splitter, a competitive steam cracker and polymers, styrene and aromatics units, generated a net result of nearly $1 billion in 2016.