LG Chem lets contract for Daesan ethylene expansion

LG Chem Ltd., Seoul, has let a contract to KBR Inc. to provide technology licensing and basic engineering design (LBED) services for a previously announced 3-year program to modernize and expand ethylene capacity at the Daesan petrochemical complex in Chungcheong Province, South Korea (OGJ Online, Oct. 21, 2016).

In addition to LBED services, KBR will deliver two of its proprietary SCORETM SC-1 furnaces as well as product-recovery system modifications to expand capacity of Daesan’s existing 1.04 million-tonnes/year naphtha cracker by 230,000 tpy to 1.27 million tpy, KBR said.

The project comes as part of LG Chem’s broader expansion of the Daesan complex, which aims to boost quality and production of ethylene derivatives, the service provider said.

KBR, who served as technology licensor for the original 350,000-tpy ethylene plant, did not disclose a value of the latest LBED contract.

Scheduled for startup in 2019, the planned ethylene expansion is one initiative under LG Chem’s strategy to conform with the South Korean government’s call for a restructuring of the nation’s domestic petrochemicals industry to ensure ongoing competitiveness and its ability to meet rising demand.

Upon full commissioning, the 287 billion-won Daesan exapansion will join production from the 1.16 million-tpy Yeosu plant in the province of South Jeolla to raise the company’s total ethylene output to 2.43 million tpy, LG Chem said in late 2016.

Contact Robert Brelsford at [email protected].