Registration document 2007 - Total.com

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