Total said its joint venture with Hanwha Group will be investing USD540 million to expand its Daesan refining and petrochemicals integrated platform.
The 50/50 joint venture is called Hanwha Total Petrochemical. Total said in an email statement that the venture will increase the site’s ethylene capacity by 30% to 1.4 million tons per year.
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 $1 billion 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.
Commenting on the development, Bernard Pinatel, President Refining & Chemicals of Total said “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. The investment reflects the strong partnership with Hanwha and will contribute to the growth of our Refining & Petrochemicals cash flows.”
Total disclosed that Hanwha Group was founded in 1952, with business interests in manufacturing, construction, finance, services and leisure industries. Hanwha Group consists of 56 domestic affiliates and 226 global networks, as of June 2016.