GS Caltex celebrates opening of new olefin production facility
GS Caltex held a completion ceremony for its new olefin production facility on November 11. The Mixed Feed Cracker (MFC) facility is located near Yeosu Plant 2 in South Jeolla Province, South Korea.
The project is a key part of the company’s strategy to bolster its position as a global leader not only in oil refining but also in petrochemical.
The completion ceremony was attended by GS Caltex President Heo Se-hong, GS Caltex Honorary Chairman Heo Dong-soo, GS Group Chairman Huh Tae-soo, and other GS Group and Chevron executives. U.S.-based Chevron Corporation is a 50-50 joint venture partner of South Korea’s GS Energy in GS Caltex.
“The completion of the MFC facility will be an important turning point in achieving both business diversification and growth as the proportion of non-oil refining businesses increases,” said Heo.
“In the future, we will actively promote the development of various high value-added products to achieve the highest level of petrochemical competitiveness,” he said.
GS Caltex invested KRW2.7 trillion (USD2.04 billion) in the MFC facility, the largest investment so far by the joint venture since its foundation in 1967. The MFC facility will play a key role in raising funds for the South Korean oil refiner’s energy transition and Environmental, Social, and Governance (ESG) management.
With the completion of the MFC facility, GS Caltex now has an annual production capacity of 750,000 tons of ethylene, 500,000 tons of polyethylene, 410,000 tons of propylene, 240,000 tons of mixed C4, and 410,000 tons of pyrolysis gasoline (pygas).
GS Caltex anticipates that it will be able to secure a competitive advantage over other petrochemical companies by creating synergies through the linked operation of its MFC facilities and its existing production facilities. In addition, GS Caltex expects to build a balanced portfolio between non-refining and refining businesses by expanding into new petrochemical products.