Cepsa to expand Korean aromatics projects

09 July 2007 15:32  [Source: ICIS news]

MUMBAI (ICIS news)--Cepsa has signed a memorandum of understanding (MoU) with South Korea’s Hyundai Oilbank (HDO) and Seoul to jointly develop a new aromatics plant and acquire an existing unit, the Spanish energy group said on Monday.

The consortium would acquire a benzene, toluene and xylene plant which is operated by HDO at its refinery in the South Korean city of Seosan and build a new aromatics complex, also at Seosan.

The plants would have a total capacity of 400,000 tonnes/year of benzene and 1.2m tonnes/year of paraxylene. Products will be sold in the Chinese market.

Cepsa and HDO’s board will set up a 50:50 joint venture to undertake the development after the basic engineering work and feasibility study have been completed, it said.

Cepsa would invest about €700m ($958m) in these projects, it added.

The company said the agreement will be effective for five years and will receive various types of South Korean government aid and incentives.

($1 = €0.73)

By: Isha Jha
+65 6780 4359

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