PARIS, April 12 French oil and gas company Total
said on Wednesday that its South Korean joint venture
with Hanwha will invest $450 million in the group's refining and
petrochemicals platform to expand capacity in order to meet
growing demand from China.
The company said the investment will increase the Daesan
complex's ethylene capacity by 30 percent to 1.4 million tonnes
per year. Ethylene is widely used in making plastics.
Total added that the expansion of the project is scheduled
to be completed by mid-2019.
"The additional ethylene production will meet local demand
and also supply the nearby fast-growing Chinese market which
imports a significant part of its ethylene requirements," Total
said in a statement.
The Daesan refining and petrochemicals platform is a 50/50
joint venture between the French oil and gas major and the South
Korean conglomerate. The venture generated a net result of
nearly $1 billion in 2016.
(Reporting by Bate Felix; Editing by Sudip Kar-Gupta)