MOSCOW (MRC) -- LG Chem Ltd, South Korean petrochemical major, plans to shut down its naphtha cracker in the Korean city of Yeosu for a scheduled turnaround this year, reported Reuters with reference to industry sources.
LG Chem is expected to put its Yeosu naphtha cracker under scheduled maintenance sometime in the second half of 2022.
LG Chem's Yeosu naphtha cracker can produce 1.16 MMtpy of ethylene.
The sources said the timings have not been finalized as yet.
As MRC informed earlier, LG Chema reduced run rates at all of its three naphtha crackers in Deasan and Yeosu, South Korea to approximately 80% on 5 January, 2022, on the back of weak demand and highly volatile upstream naphtha costs.
All three crackers with a combined capacity of 3.25 million tons of ethylene and 1.48 million tons of propylene would operate at reduced rates throughout the month of January. It is reported that the producer would ramp up the production in February, however, it is unclear on the exact schedule.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
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