Japan's Tosoh plans $88 mln naphtha cracker upgrade
11/05/2017 03:42
TOKYO, May 11 (Reuters) - Japanese chemical maker Tosoh Corp
4042.T said on Thursday it will invest about 10 billion yen
($88 million) to upgrade its 527,000 tonnes-per-year naphtha
cracker in Yokkaichi, central Japan, by 2020.
The move, which will include the installation of a new
large-scale furnace to boost efficiency and cut costs, will
allow the facility to make the same amount of ethylene from
smaller volumes of feedstock naphtha, a company spokesman said.
It marks the first large-scale investment on the cracker
since 1998.
Japanese naphtha cracker operators have been trying to
adjust to shrinking domestic demand market by closing some
crackers and cutting costs.
Idemitsu Kosan 5019.T said in November it would expand the
processing of propane at its naphtha cracker to take advantage
of cheap liquefied petroleum gas (LPG) prices. urn:newsml:reuters.com:*:nL4N1DU2JZ
Tosoh plans to keep its naphtha import volumes at current
levels. It will generate savings by expanding its gas turbine
facilities and using the cracker's excess naphtha feedstock for
in-house power generation, the spokesman said.
Tosoh has 14 existing furnaces that process naphtha.
The new large-scale furnace will replace two ageing small
furnaces that will be held in reserve, while the remaining
furnaces will be renovated to improve efficiency, he said.
Some of the work will likely be carried out during the
cracker's large scale maintenance shutdowns in spring 2018 and
spring 2020, he said.
($1 = 114.2700 yen)
(Reporting by Osamu Tsukimori; Editing by Richard Pullin)
((osamu.tsukimori@thomsonreuters.com, +813 6441 1857, Reuters
Messaging: osamu.tsukimori.thomsonreuters.com@reuters.net;))
Keywords: NAPHTHA TOSOH/