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S-OIL Flying High with SHAHEEN Project for Expansion into Petrochemicals

3/10/2023

Press Release - S-Oil

S-OIL held a groundbreaking ceremony at the largest-ever domestic petrochemical project ‘SHAHEEN’ at the Ulsan Refinery.

The Company is investing 9.258 trillion Won in the construction of the complex scheduled to be completed in 2026.

● S-OIL lays the foundation for sustainable growth to innovate across clean energy and chemicals

- Next generation facilities producing 1,800 KTA of ethylene and feedstock for plastic production

- Power generation based on waste heat recovery, energy efficiency improvement, and carbon reduction

● Major shareholder Aramco approved its largest-ever investment in Korea

- Invests over 14 trillion Won into ‘crude to chemical’ projects

- Supports the first-ever commercialization of TC2C technology that converts crude into petrochemical feedstocks

On March 9th, S-OIL held the groundbreaking ceremony at S-OIL Ulsan Refinery in the presence of President Yoon Suk Yeol for the 9.258 trillion Won Shaheen Project (Shaheen: Arabic word for falcon), Korea’s biggest ever petrochemical project. The ceremony was attended by some 300 guests including Chang-Yang Lee, Minister of MOTIE (Ministry of Trade, Industry and Energy), Doo-kyum Kim, mayor of Ulsan City, Amin H. Nasser, President & CEO of Aramco, members from the central and local government, and construction companies. The ceremony celebrated the start of a new chapter in the Company’s history.

Shaheen reflects S-OIL’s ambitious plan to solidify its position as a clean energy and petrochemicals company that supports broader carbon neutrality ambitions. The project is located at the Onsan Industrial Complex of Ulsan City, with completion expected in 2026.

Major units include the world’s largest steam cracker (production capacity: 1,800 KTA of ethylene), a TC2C facility which converts crude directly into petrochemical feedstock (LPG, Naphtha), a polymer facility that produces high value petrochemical feedstock for plastics and other synthetic resins, and other facilities including storage tanks.

After completion of the project, S-OIL’s petrochemical production will more than double to 25% from the current 12% of total production, playing a pivotal role in diversifying its fuel-weighted business.

■ S-OIL to diversify its business portfolio from “crude to chemicals” for innovative growth

Shaheen represents the largest-ever investment into South Korea by Aramco, one of the world’s preeminent integrated energy and chemicals companies. Total investment including the 4.8 trillion Won first phase completed in 2018, amounts to 14 trillion Won.

“We are embarking on a great journey in the belief that this is the right time to invest in the future,” said Hussain A. Al Qahtani, the CEO of S-OIL. “Support from all of our stakeholders and our outstanding employees will no doubt deliver another major investment. Shaheen will not only expand the Company’s business portfolio into petrochemicals but also advance our efforts to drive innovative growth across the entire value chain of our business.”

The project is not only benefitting the economy of Ulsan, but also the country’s wider manufacturing industry.

It will generate as many as 17,000 jobs during peak construction. After start-up it will support more than 400 jobs and provide 3 trillion Won in added value to the economy.

Shaheen will significantly improve the stable supply of petrochemical feedstock and more than double ethylene production capacity in Ulsan. It will also supply monomer products through a pipeline to adjacent downstream olefin-processing businesses.

■ Cutting edge technologies

Shaheen will showcase cutting edge technologies that support the reduction of greenhouse gas emissions. For example, its steam cracker will recycle waste heat for power generation in the refinery.

The use of ‘TC2C’ technology will help to reduce carbon emissions through a simplified and highly efficient conversion process. With the deployment of this new technology, which is being commercialized for the first time, crude and other low value heavy oils will be upgraded into steam cracker feedstocks.