4 naphtha cracker maintenance shutdowns expected in South Korea in 2015

07-Jan-15

South Korea is expected to shut four naphtha crackers with a total capacity of 3.76 mln tpa of ethylene for month-long maintenance in 2015, more than double the capacity shut last year, as per sources in Reuters. The four crackers scheduled for maintenance are owned by Samsung Total, LG Chem, YNCC and Lotte Chemical. Overall capacity in Asia will, however, not be affected as South Korea's capacity to be offline will, be offset by Japan's fewer cracker maintenance this year. This will overall lead to a less dramatic cut in naphtha feedstock demand in the two countries. Approximately, 5.3 mln tpa of ethylene capacity will be taken down for maintenance in Japan and South Korea against about 6.23 million tpa in 2014. Japan and South Korea have capacity to produce 16 mln tpa of ethylene and are net short of naphtha.