Lotte Chemical will considerably expand its usage of liquefied petroleum gas (LPG) while decreasing its use of naphtha in the production of ethylene. By utilising LPG, which is less expensive than naphtha, the firm hopes to kill two birds with one stone: reduce carbon emissions while increasing the competitiveness of its main business.
Lotte Chemical stated on July 5 that it will invest around 140 billion won to retool its Daesan and Yeosu plants for the transition from naphtha to LPG. LPG now accounts for 20% of Lotte Chemical’s ethylene output. The firm intends to increase this stake to 40% by the end of 2022, with the possibility of increasing it to 50% in the future.
In Yeosu and Daesan, Korea, Lotte Chemical produces around 2.3 million tonnes of ethylene. When the production quantities in and Malaysia are included, its total ethylene output is 4.5 million tonnes. In terms of ethylene output, it is the first in Korea and the eighth in the world.