Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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Base Chemicals<br />
TOTAL’s Base Chemicals activities en<strong>com</strong>pass petrochemicals<br />
and fertilizers.<br />
Sales reached 12.01 B€ in 2006, <strong>com</strong>pared to 10.25 B€ in 2005<br />
and 8.86 B€ in 2004. Demand remained strong throughout the<br />
year due to the favorable economic environment. In 2006,<br />
naphtha prices were very volatile, increasing markedly during the<br />
Petrochemicals<br />
TOTAL’s production capacities by main product groups and regions<br />
first half of the year before decreasing significantly during the<br />
second half. As a result, margins markedly improved during the<br />
latter part of the year. Adjusted net operating in<strong>com</strong>e from Base<br />
Chemicals activities increased by more than 9% in 2006<br />
<strong>com</strong>pared to 2005 and by 9% in 2005 <strong>com</strong>pared to 2004.<br />
2006 2005 2004<br />
Asia and<br />
(kt/y) As at December 31, Europe North America Middle East (c) Worldwide Worldwide Worldwide<br />
Olefins (a) 5,185 1,195 655 7,035 7,005 7,055<br />
Aromatics 2,600 930 725 4,255 4,125 4,040<br />
Polyethylene 1,315 440 280 2,035 2,035 2,130<br />
Polypropylene 1,205 1,070 145 2,420 2,420 2,305<br />
Styrenics (b) 1,240 1,350 515 3,105 3,175 3,110<br />
(a) Ethylene, propylene and butadiene.<br />
(b) Styrene, polystyrene and elastomers (activity discontinued at the end of 2006).<br />
(c) Including minority interests in Qatar and 50% of Samsung-<strong>Total</strong> Petrochemicals capacities in Daesan (South Korea).<br />
TOTAL’s petrochemicals activities include olefins and aromatics<br />
(base petrochemicals) as well as polyethylene, polypropylene and<br />
styrenics. On October 1, 2004, <strong>Total</strong> Petrochemicals was created<br />
to regroup these activities.<br />
TOTAL’s main petrochemicals sites are located in Belgium<br />
(Antwerp, Feluy), France (Gonfreville, Carling, Lavéra, Feyzin), and<br />
the United States (Port Arthur, Houston and Bayport in Texas,<br />
Carville in Louisiana) as well as in Singapore and China (Foshan).<br />
Most of these sites are either adjacent to or connected by<br />
pipelines to Group refineries. As a result, most of TOTAL’s<br />
petrochemicals activities are closely integrated with the Group’s<br />
refining operations.<br />
In August 2003, TOTAL entered into a 50/50 joint venture with<br />
Samsung General Chemicals. This joint venture, named Samsung-<br />
<strong>Total</strong> Petrochemicals, has an integrated site at Daesan in South<br />
Korea where it produces a wide range of petrochemicals products<br />
and polymers which are marketed in Asia.<br />
Business overview<br />
Chemicals - Base Chemicals<br />
2<br />
TOTAL’s objective is to strengthen its position among the leaders<br />
in petrochemicals. In mature markets, TOTAL intends to improve<br />
the <strong>com</strong>petitiveness of its existing large sites. In the faster<br />
growing Asian markets, TOTAL’s strategy is to expand its<br />
activities, either from plants located within the more dynamic<br />
markets or from sites located in countries benefiting from<br />
favorable access to raw materials.<br />
Samsung-<strong>Total</strong> Petrochemicals launched a major program to<br />
expand and upgrade its site at Daesan as part of this strategy.<br />
This investment targets a significant expansion of the capacities<br />
of the steamcracker and of the styrene plant, as well as the<br />
construction of a new polypropylene line. Construction on these<br />
plants is continuing, and they are expected to be brought on<br />
stream in <strong>2007</strong> and 2008, respectively.<br />
In Qatar, where the Group has had a long-term presence through<br />
its interest in Qapco, TOTAL, through its affiliate Qatofin, is<br />
participating in the construction of an ethane-based<br />
steamcracker at Ras Laffan and of a new low-density<br />
polyethylene plant at Mesaïeed. These two units are scheduled to<br />
be brought onstream at the end of 2008.<br />
At all sites, safety and environmental improvements were in line<br />
with the yearly targets set by the Group.<br />
TOTAL – <strong>Registration</strong> Document 2006 51