S-Oil to Invest 263 Billion KRW in Building 'Natural Gas In-House Power Generation Facility'

Targeting Completion by End of 2026
New Facility Construction
Expected to Cut Annual Carbon Emissions by 160,000 Tons

S-Oil is investing 263 billion KRW in the construction of a new in-house power generation facility utilizing natural gas. This investment is expected to improve the plant’s energy efficiency while simultaneously reducing carbon emissions.

On January 23, S-Oil and the Ulsan Metropolitan Government signed a memorandum of understanding (MOU) at Ulsan City Hall regarding the construction of the natural gas power generation facility, pledging ongoing cooperation. The signing ceremony was attended by President Park Bongsoo and Ulsan Mayor Kim Dookyum, among others. This agreement aims to align with the government’s energy policy direction of carbon reduction, as well as to revitalize the local economy and create jobs.

Onsan Plant located in Ulju-gun, Ulsan. Photo by S-Oil

Under the agreement, S-Oil will build a 121MW natural gas power generation facility at its Onsan Plant in Ulju-gun, Ulsan. This capacity corresponds to 24% of the plant’s current electricity consumption. S-Oil plans to fully utilize the electricity generated by this facility for its own operations, replacing externally supplied electricity. The company stated that it expects to achieve cost savings as a result.

The natural gas power generation facility will produce electricity by driving turbines through the combustion of natural gas. The high-temperature exhaust gas generated in this process will be transferred to a Heat Recovery Steam Generator (HRSG) to produce high-pressure steam. By utilizing this system, the operation of existing steam boilers can be reduced, enabling the plant to cut annual carbon dioxide emissions by 160,000 tons. The facility is scheduled for completion by the end of 2026.

Meanwhile, the ongoing petrochemical investment known as the Shaheen Project also includes the construction of two additional natural gas power generation units. Once all these facilities are completed, the proportion of in-house power generation at S-Oil’s Onsan Plant is expected to rise from the current 10% to 42%. An S-Oil representative stated, “We will also contribute to securing national power supply stability and to the Ulsan economy.”