LG Chem’s expanded Daesan cracker runs at 100%

27 April 2007 10:54  [Source: ICIS news]

SINGAPORE (ICIS news)--LG Chem’s newly expanded naphtha cracker in Daesan, South Korea, has successfully reached full operating rates after encountering production problems since restarting on 2 April, a company source said on Friday.

 

The cracker reached full production last week, he said, after running at 70%-80% capacity since its restart due to technical problems.

 

The 740,000 tonne/year unit was reported to have shut down for a short while on the weekend of the restart. This was due to some mechanical problems at its ethylene splitter reboiler, a source close to the company said.

 

Both ethylene and propylene production were on-spec now, he said, but no spot materials for ethylene were available as the producer catches up with its backlog of orders. A significant proportion is contracted to its joint venture project vinyls maker LG Bohai, in Tianjin, China, he added.

 

LG Chem leads the joint venture with LG Petrochemical (20%), LG International (10%), LG Dagu (10%) and Tianjin Bohai Chemical Industry Co (15%). The plant incorporates 350,000 tonne/year vinyl chloride monomer (VCM) and 300,000 tonne/year ethylene dichloride (EDC) units, both of which started operations on 1 April.

 

As for propylene, LG Chem has one spot cargo to offer for end-May/June loading, he said.

 

The South Korean petrochemical producer had expanded its ethylene capacity by 260,000 tonnes/year to 740,000 tonnes/year and propylene capacity by 130,000 tonnes/year to 370,000 tonnes/year in its recent expansion, currently making it the third largest cracker in South Korea, before the expansion of Samsung Total’s cracker in May/June.


By: Gina Myung
+65 6780 4359



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