Total-Hanwha joint venture to expand its platform
16 May 2017
Hanwha Total Petrochemical, a 50/50 joint venture between Hanwha and Total, has recently decided to invest and expand its Daesan refining & petrochemicals integrated platform. The planned USD 450M investment will increase the site’s ethylene capacity by 30% to 1.4 million tons per year.
Source: Wikimedia Commons
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 USD 1B in 2016.
The extension will significantly increase the site’s flexibility, enabling it to process competitively priced propane feedstock which is abundantly available, notably due to the shale gas revolution in the United States. The expansion project is set to be completed by mid-2019.
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.
“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,” said Bernard Pinatel, President Refining & Chemicals of Total. “The investment reflects the strong partnership with Hanwha and will contribute to the growth of our Refining & Petrochemicals cash flows.”