Hyundai Oilbank and Lotte Chemical plan petrochemicals complex
S. Korean groups Hyundai Oilbank and Lotte Chemical have signed an outline agreement covering the construction of a petrochemicals complex in Seosan, S. Korea. The complex will have capacities of 1 million tons a year of mixed xylene and 1 million tons a year of light naphtha.
The mixed xylenes production process will generate diesel and kerosene as by-products. The naphtha produced will go to supply Lotte Chemical’s petrochemicals units and the mixed xylenes will supply Hyundai Cosmo, a joint venture between Hyundai Oilbank and Japanese company Cosmo Oil, as well as Lotte Chemical.
The project represents an investment of KRW1 trillion KRW (USD897 million) and the complex is slated to enter service in mid-2016. It will use 110,000 barrels per day of condensates but will also reduce the need for KRW2 trillion per year (USD1.8 billion) worth of imports. Hyundai Oilbank’s Seosan refinery has a 390,000 barrel per day capacity.
(July 22, 2013)