GS Group to invest US$1 billion in heavy oil unit

South Korea’s GS Group will invest 1.2 trillion won (US$1.07 billion) this year on expanding its subsidiary GS Caltex’s cracking capacity at its heavy oil upgrading unit and in developing renewable energy sources, such as biofuels and coal-to-gas projects, as well as in securing assets in overseas oil fields. The company has set aside 600 billion won (US$533.83 million) to complete the construction of its No. 3 heavy oil upgrading unit at its Yeosu complex on the country’s south coast. The new plant, with a capacity of 113,000 barrels per day (bpd), is scheduled to start up in October. It currently operates two heavy oil upgrading units at the same site, with a combined capacity of 155,000 bpd. (January 22, 2010)