Annual Production of Up to 3.2 Million Tons of Petrochemical Products
Next-Generation Plant to Be Built in Ulsan
Aramco Supports World's First Commercialization of New Technology 'TC2C' for Converting Crude Oil to Petrochemical Feedstock
Hussein Al Qatani, CEO of S-Oil (second from the left), is taking a commemorative photo on the 17th at the Korea Chamber of Commerce and Industry in Seoul after signing the contract for the selection of the Shahin Project EPC company with representatives from construction companies such as Hyundai Construction, Hyundai Engineering, and Lotte Construction. From the left, Ha Seok-ju, CEO of Lotte Construction; Hussein Al Qatani, CEO of S-Oil; Yoon Young-jun, CEO of Hyundai Construction; and Hong Hyun-sung, CEO of Hyundai Engineering. Photo by S-Oil.
[Asia Economy Reporter Donghoon Jung] S-OIL is developing a petrochemical project worth 9.258 trillion KRW (approximately 7 billion USD) in Ulsan. This project will be the world's largest refinery and petrochemical steam cracker (chemical product facility), supporting the long-term and stable supply of petrochemical components to Korea and the global market.
On the 17th, S-OIL announced that it had made the final decision to invest in the 'Shaheen Project' (Shaheen means 'hawk' in Arabic) to support Korea's energy transition.
The Shaheen Project is the largest investment by Aramco in Korea to date. Aramco holds a 63.4% stake in S-OIL through its subsidiary, Aramco Overseas Company (AOC).
Following the first phase petrochemical project completed in 2018, which was worth 4 billion USD (approximately 5.3312 trillion KRW), the Shaheen Project is expected to produce up to 3.2 million tons of petrochemical products annually.
S-OIL's announcement coincided with a summit meeting between President Yoon Suk-yeol and Saudi Arabia's Crown Prince and Prime Minister Mohammed bin Salman, who was visiting Korea.
This world's largest steam cracker will apply Aramco's advanced TC2C (Thermal Crude-To-Chemicals) technology to produce high value-added petrochemical products used as raw materials for plastics and synthetic resins. Construction is scheduled to begin in 2023 and be completed by 2026.
Hussein Al-Qahtani, CEO of S-OIL, stated, "We have taken the first step on a long journey toward development. With the full support of the Korean and Saudi governments, S-OIL's experience in successfully executing major projects, and the outstanding expertise of our employees, we are confident that the Shaheen Project will expand our petrochemical business portfolio and contribute to achieving industry-leading energy efficiency."
The Shaheen Project is expected to create up to 17,000 jobs per day during the construction period and generate over 3 trillion KRW in revitalization effects for the Ulsan construction industry. It is also anticipated to contribute to the stable supply of petrochemical raw materials to Korea.
The core facility of the Shaheen Project, the steam cracker, produces basic petrochemical fractions such as ethylene, propylene, butadiene, and benzene by processing various feedstocks including naphtha and by-product gases generated during crude oil refining. Additionally, it will produce polyethylene, a raw material used in plastics and synthetic materials.
TC2C is a process that decomposes low-value heavy oil products within existing refineries and converts them into steam cracker feedstock. The Shaheen Project is set to commercialize TC2C technology for the first time in the world, and this technology is expected to secure competitiveness compared to existing crackers.
The Shaheen Project will support more efficient operation of S-OIL through waste heat recovery, recycling, and improved energy efficiency.
After the completion of the Shaheen Project, S-OIL will expand the share of petrochemicals in its production volume from the current 12% to about 25%, more than doubling it.
In this regard, S-OIL held a contract signing ceremony on the same day at the Korea Chamber of Commerce and Industry in Seoul with construction companies including Hyundai Engineering & Construction, Hyundai Engineering, and Lotte Construction to select EPC (Engineering, Procurement, and Construction) contractors for the Shaheen Project, officially commencing the project construction.
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