S Korea joint venture expansion will give us strong base – Total

27 January 2012 11:34  [Source: ICIS news]

SINGAPORE (ICIS)--French oil and gas major Total on Friday said the expansion of its joint venture Samsung Total Petrochemicals in Daesan, South Korea, will give the group a strong base for expansion in Asia.

Total’s joint venture firm is investing $1.8bn (€1.37bn) to expand and upgrade its petrochemical complex in Daesan. The project includes the construction of a second aromatics unit as well as a 240,000 tonne/year ethylene vinyl acetate (EVA) copolymer facility.

“The investment project in partnership with Samsung is aligned with Total’s strategy of expanding in growth markets,” said Patrick Pouyanne, president of Total’s refining-chemicals business.

“It gives us a strong base we need to maintain our position as a leading supplier of value-added products to meet demand in Asia – especially China,” Pouyanne added.

The new aromatics unit, scheduled for completion by September 2014, will produce 1m tonnes/year of paraxylene (PX) and 420,000 tonnes/year of benzene, the company said.

With the completion of the aromatics unit in 2014 and the upgrade of existing PX capacity this year, total PX production capacity at the complex will be boosted to 1.76m tonnes/year, it said.

The Daesan complex produces four core products – polypropylene (PP), polyethylene (PE), styrene monomer (SM) and PX. Half of its output is exported, primarily to China, according to Total.

The company did not provide details of the completion schedule for the new EVA plant.

Samsung Total Petrochemicals had announced the investment in a new aromatics complex in Daesan on 10 January.

($1 = €0.76)

By: Nurluqman Suratman

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