Samsung Total (Korea), an equally owned joint venture between Samsung Group and Total Group, recently completed its new construction of the 4000 ton capability tank for LPG in Daesan manufacturing complex, Chungnam (Korea). The company has decided to dramatically expand the alternative LPG proportion by replacing naphtha consumption, its current main raw material to attain cost competitiveness of NCC (Naphtha Cracking Center). The company ams to substantially increase use of LPG as a feedstock to 20% annually, particularly up to 40% in summer when LPG is comparably cheaper. The decision is in response to the series of Middle East polyolefin products, those basically made from ethane gas comparably cheaper than naphtha, will flood the markets including China in the second half of 2009.
Samsung Total's Daesan station tank started full-scale construction last month is designed to be a drum-shaped tank having a dome of 60 meters as diameter, 30 meters as its height and will require 60 bln won investment. The massive storage station tank will be completed by July, 2010. After completion, the company will be armed with a large scale storage tank, so that it expects cost reduction effect amounting to 40 bln won every year, by not only getting to attain raw resources flexibility but cutting down distribution costs sharply.
05-Mar-09 
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