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Major Expansion and Upgrade Project at Samsung Total Petrochemicals' Complex in Daesan, South Korea

Total Total is consolidating its positions in petrochemicals in Asia with a new expansion and upgrading project for the Daesan complex in South Korea, which the Group owns with Samsung as part of the Samsung Total Petrochemicals 50/50 joint venture.

With costs approaching $1.8 billion, the project calls for the construction of a second aromatics(1) unit and an ethylene-vinyl acetate (EVA) copolymer unit at the Daesan petrochemical complex.

The new aromatics unit will have a production capacity of around 1 million metric tons of paraxylene and 420,000 metric tons of benzene per year and will be completed by September 2014. Paraxylene is used to manufacture polyester, while benzene is used to produce petrochemical products such as styrene(2).

With the completion of the aromatics unit in 2014 and the upgrade of existing paraxylene capacity in 2012, total paraxylene production capacity will be increased to 1.76 million metric tons.

The new EVA unit will produce 240,000 metric tons per year of ethylene-vinyl acetate copolymers. This resin is used in products such as electrical cables, adhesives and solar panels. Environmentally friendly and versatile, EVA is expected to see continued growth in demand.

"This investment project in partnership with Samsung is aligned with Total's strategy of expanding in growth markets. It gives us the strong base we need to maintain our position as a leading supplier of value-added products to meet demand in Asia, especially China," said Patrick Pouyanné, President of Total's Refining - Chemicals business. "We are pursuing our strategy of focusing our spending on our most efficient integrated platforms, such as the Daesan complex."

The Daesan petrochemical complex is a world-class facility that manufactures four main products - polypropylene, polyethylene, styrene monomer and paraxylene. Fifty percent of its output is exported, primarily to China.

Samsung Total Petrochemicals

Set up in 2003, Samsung Total Petrochemicals is a 50/50 joint venture between Total and Samsung. It combines Total's recognized technological expertise and production capabilities with Samsung's acknowledged operational excellence and access to local markets. The joint venture supplies a wide range of products, from building block intermediate chemicals to polymers used in everyday products.

Total in South Korea

Total's presence in South Korea extends beyond Samsung Total Petrochemicals to lubricants, LNG, alternative energies, adhesives (through Bostik), antivibration systems (through Hutchinson) and electroplating (through Atotech).

1 Benzene and paraxylene production unit. Derived from oil, these two base chemicals are raw materials for polymers, which are used in the manufacture of plastics.

2 Styrene is a building block intermediate chemical used in the manufacture of many plastics.


Published 30/01/2012

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Total Exploration & Production in the United Kingdom
Total has been present in the United Kingdom since 1962. The country represented near to 10% of Total Group's equity production in 2009, amounting to 217,000 barrels of oil equivalent per day.

Total E&P UK is one of the most active oil and gas operators in the United Kingdom where it continues to invest heavily. In addition to the Laggan and Tormore development launch, Total has launched this year the Islay field development, with first gas expected for the second half of 2011. Recently, Total also announced the launch of Phase 2 of the development of the West Franklin field, with a production expected to start by the end of 2013.

Employing around 750 staff at its Aberdeen headquarters, the company's portfolio includes operatorship of the Alwyn Area fields, the high pressure/high temperature Elgin and Franklin fields and the St Fergus Gas Terminal, together with a number of non-operated fields.

With the objective to always operate in line with sustainable development requirements, Total E&P UK is committed to optimising safety and environmental performance. Total E&P UK also contributes to the community in and around its north-east Scotland base.

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