Supplied as Feedstock to Domestic Petrochemical Companies
"Contributing to Strengthening the Fundamental Competitiveness of the Petrochemical Industry"
S-OIL announced on the 17th that the EPC (Engineering, Procurement, Construction) progress rate of the Shahin Project has surpassed 55%.
The Shahin Project is a project to construct TC2C (a facility that directly converts crude oil into petrochemical raw materials), steam crackers (ethylene production facilities), storage facilities, and more on approximately 480,000㎡ of land adjacent to the S-OIL Ulsan Complex within the Onsan National Industrial Complex. Additionally, a polymer plant will be built on about 400,000㎡ of land in the Dangwol area of Ulju-gun to produce high value-added polymer products using ethylene produced from the steam cracker as raw material. This project involves an investment of KRW 9.258 trillion, the largest scale in the history of domestic petrochemicals, and aims for completion in the first half of next year.
The S-OIL Shahin project is progressing smoothly with the goal of completion in the first half of next year at the Onsan National Industrial Complex in Ulsan. Photo by S-OIL
Once the Shahin Project is completed as planned, basic petrochemical feedstocks such as ethylene (1.8 million tons), propylene (770,000 tons), butadiene (200,000 tons), and benzene (280,000 tons) will be producible after commercial operation begins in the second half of next year. Among these, S-OIL plans to produce polyethylene (LLDPE 880,000 tons, HDPE 440,000 tons), which is used as raw material for various synthetic materials including plastics, using ethylene.
S-OIL plans to mainly supply the basic petrochemical feedstocks produced at the Shahin Project facilities to domestic petrochemical downstream companies through pipelines. Construction of logistics-related infrastructure, including new pipeline networks, is underway simultaneously. Long-term agreements for stable raw material supply have been signed between S-OIL and petrochemical companies located in the Ulsan and Onsan National Industrial Complexes, which is expected to serve as an opportunity to boost the competitiveness of the domestic value chain.
The Shahin Project plans to secure competitive advantages in cost competitiveness and energy efficiency by introducing the world’s first commercialized TC2C new technology. The core facility, TC2C (Thermal Crude to Chemical), is an optimized process to increase production of petrochemical raw materials such as naphtha, and is expected to enable the production of petrochemical products with lower carbon intensity compared to traditional petrochemical industries.
During the license process design package (Process Design Package) phase of the Shahin Project, various cost-saving ideas were incorporated to achieve the highest energy efficiency, reaching the first quartile (top 25% in the industry) of the energy intensity index, thereby reducing carbon emissions.
S-OIL plans to construct a 150 MW-scale natural gas self-power generation facility to improve energy efficiency and reduce carbon emissions. The electricity produced at the power generation facility will be supplied entirely for the operation of the Shahin Project facilities, enhancing operational stability. By replacing externally sourced electricity, it is expected to reduce costs and allow flexible operation according to the plant’s electricity demand.
An S-OIL official stated, "Considering the energy and carbon reduction new technologies and operational efficiency levels of the Shahin Project, we expect it to be an important turning point in enhancing the fundamental competitiveness for the sustainable growth of the heavy chemical industry, which has played a central role in the national economy."
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