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Formosa to increase naphtha cracking capacity in US
01
Aug '11
Formosa Plastics Corporation, USA will increase the annual capacity of ethylene produced at its naphtha cracking complex by 800,000 metric tons, up from its original plan of 450,000 metric tons.

The cost of investment for the expansion project for the third naphtha cracker will be over US$ 1.5 billion, higher than the US$ 900 million planned originally.

The third naphtha cracker uses shale gas as raw material, while the first and second naphtha crackers use naphtha as raw material.

When the expansion project gets completed by 2015, the annual capacity of Formosa Plastics USA will rise to 1.24 million metric tons of propylene and 2.42 million metric tons of ethylene.

This will still be less than the annual production capacity of Formosa Plastics Group's (FPG's) petrochemical complex located in Taiwan's Yunlin County, which has the capacity to produce 2.37 million metric tons of propylene and 3 million metric tons of ethylene.

The expansion project to be undertaken at the Point Comfort production base in Texas is expected to get approval for expansion by 2012. The increased production of ethylene and propylene would be supplied to the customers in North and Latin America.

Once the expansion is completed, Formosa Plastics USA will contribute about 10 percent to the revenue and profit of FPG, its parent company. Currently, it accounts for about 7.3 percent of the revenue of FPG.

The output of a shale gas mine owned by Formosa Plastics USA is used as raw material for the naphtha crackers and also supplied to customers.

Fibre2fashion News Desk - India

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