Inspectioneering
News

Japan's Tosoh Plans $88M Naphtha Cracker Upgrade

Reuters, May 11, 2017
Reuters

Japanese chemical maker Tosoh Corp 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 said in November it would expand the processing of propane at its naphtha cracker to take advantage of cheap liquefied petroleum gas (LPG) prices.

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 aging 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)

 

Click here to read the full article from Reuters.

Copyright 2017 Thomson Reuters. Click for restrictions.

Comments and Discussion

There are no comments yet.

Add a Comment

Please log in or register to participate in comments and discussions.

Interested in equipment reliability & integrity? Sign up for weekly updates.

Inspectioneering Journal

Explore over 20 years of articles written by our team of subject matter experts.

Company Directory

Find relevant products, services, and technologies.

Job Postings

Discover job opportunities that match your skillset.

Case Studies

Learn from the experience of others in the industry.

Event Calendar

Find upcoming conferences, training sessions, online events, and more.

Industry News

Stay up-to-date with the latest inspection and asset integrity management news.

Blog

Read short articles and insights authored by industry experts.

Acronyms

Commonly used asset integrity management and inspection acronyms.

Asset Intelligence Reports

Download brief primers on various asset integrity management topics.

Videos

Watch educational and informative videos directly related to your profession.

Expert Interviews

Inspectioneering's archive of interviews with industry subject matter experts.