GS Caltex Corp., Seoul, a 50-50 joint venture of GS Energy Corp. and Chevron Corp., is investing 2 trillion won to build an olefins production complex near an existing refining and petrochemical operations at Yeosu in the South Korean province of Jeollanam-do.
Scheduled to begin construction in 2019, the mixed-feed cracking complex will be designed to produce 700,000 tonnes/year of ethylene and 500,000 tpy of polyethylene, GS Caltex said.
While it did not disclose a firm construction timeline or startup date for the cracker, GS Caltex said its decision to invest in the proposed project comes as part of a broader program to diversify the company’s business portfolio, which currently focuses on its refining and aromatics businesses.
The company said it expects the expansion of its petrochemical business and ultimate integration with existing refining and aromatics operations will generate more than 400 billion won annually once completed.
This latest proposed expansion follows GS Caltex’s more than 5 trillion-won investment between 2006 and 2013 in upgrades to its facilities, as well as an additional 12 trillion-won investment from 2000 to 2017 on projects to increase its overall operational competitiveness, the company said.
Alongside a 790,000-b/sd refinery, GS Caltex’s Yeosu current operations also include plants for production of 2.8 million tpy of aromatics and 180,000 tpy of polypropylene.
Contact Robert Brelsford at [email protected].
