LG Chem’s aromatics production declines on use of LPG

14 April 2009 11:29  [Source: ICIS news]

SINGAPORE (ICIS news)--South Korean aromatics producer LG Chem has seen a fall in aromatics production since March due to its use of liquefied petroleum gas (LPG) as a secondary feedstock for its crackers, a company source said on Tuesday.

The source did not specify the actual decline in aromatics production.

LG Chem’s use of LPG as a feedstock at its two crackers in Daesan and Yeosu is expected to continue until the third quarter of this year, the source said.

From July to August, the relatively lower cost of LPG at around $430/tonne (€323/tonne) CFR (cost and freight) Japan, compared with naphtha at around $460-470/tonne CFR Japan, has provided the seasonal impetus for regional crackers to maximise usage of the feedstock.

In Yeosu, LG Chem produces 220,000 tonnes/year of benzene, 100,000 tonnes/year of toluene and 55,000 tonnes/year of solvent-grade xylene.

The Daesan-based cracker and hydrodealkylation (HDA) unit produces 240,000 tonnes/year of benzene.

At least two other Korean cracker operators have also started using LPG as a feedstock, with one Asian cracker operator starting to use it in April after purchasing 30,000 tonnes of the gaseous feedstock, industry sources said.

Depending on the cracker design, as much as 10-15% of feedstock naphtha can be replaced with LPG, sources said.

Asian naphtha prices opened softer Tuesday, with price indications for the second half of May pegged at $462.50-465.50/tonne CFR (cost and freight) Japan.

($1 = €0.75)

Desmond Chia contributed to this article

For more information on aromatics visit ICIS chemical intelligence
Please visit the complete ICIS plants and projects database
To discuss issues facing the chemical industry go to
ICIS connect


By: Mahua Chakravarty
+65 6780 4359



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index