SK Energy to restart smaller naphtha cracker after two years on petchem profits

25-Oct-10

SK Energy Co Ltd is restarting the smaller of its two naphtha crackers to cash in on recent strong petrochemical margins after a two-year shutdown due to poor profits, as per Reuters. The 200,000 tpa unit, shut down in 2008, will be restarted sometime in November. Overall petrochemical margins for contracted supplies have been pegged at around US$350/ton last month, and about US$200-300/ton currently. SK Energy also operates a 660,000 tpa naphtha cracker, which was closed for routine maintenance around Oct. 4, and is due to resume operations in early November. The long-term shutdown of the smaller cracker was planned in October 2008 after the petrochemical industry was hammered by the global financial crisis and margins sank into the red. The market has recovered, but the refiner continued to keep the unit shut indefinitely due to its small capacity.