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Lotte expects to restart Daesan cracker by end of year

May 12/2020

MOSCOW (MRC) -- South Koreas Lotte Chemical might resume operations at its cracker in Daesan that was hit by an explosion in early March by late 2020, according to Chemweek.

The company shut its naphtha cracker on March 4,2020, after an explosion at the plant in the southwestern city of Seosan, which injured 31 people. The explosion, which was triggered by a fire at a compressor in Lotte Chemicals naphtha cracker at around 3 a.m. local time (1800 GMT), was soon contained and under control, the company said then in a statement.

The petrochemical maker said it has suspended its naphtha crackers operations in Daesan county in Seosan due to the fire and will seek to minimize supply disruptions.

The company is looking into the exact cause of the accident, it said then, adding there was no leak of toxic chemicals.

Initially, Lotte Chemical planned to restart this cracker in a couple of weeks after the fire.

As MRC wrote before, Lotte Chemical has shut down its Deasan cracker for maintenance turnaround on October 14, 2019. The cracker resumed production on November 10, 2019. Located at Daesan in South Korea, currently the cracker has an ethylene capacity of 1.1 million mt/year and propylene capacity of 540,000 mt/year.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 557,060 tonnes in the first three month of 2020, up by 7% year on year. High density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments rose because of the increased capacity utilisation at ZapSibNeftekhim. Demand for LDPE subsided. At the same time, PP shipments to the Russian market was 267,630 tonnes in January-March 2020, down 20% year on year. Homopolymer PP and PP block copolymers accounted for the main decrease in imports.

Lotte Chemical runs two naphtha crackers in South Korea. One cracker is located in Daesan county in Seosan which can produce 1.1 million tonnes per year of ethylene with the other 1.2 million tonnes per year cracker in the southwestern city of Yeosu.
Author:Margaret Volkova
Tags:PP, PE, LLDPE, PP block copolymer, homopolymer PP, propylene, LDPE, HDPE, ethylene, Honam Petrochemical, Lotte Chemical, Russia, South Korea.
Category:General News
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