South Korea’s S-Oil kickstarted the construction of the crude-to-chemical plant

According to media reports, S-Oil Corporation is expected to erect a new petrochemical plant in Ulsan, South Korea by 2026 as the company broke ground at the 9 trillion Won project on 10 March 2023. 

The Phase II complex comprises of the world’s largest steam cracker with a production capacity of 1.8 million tons of ethylene per annum. The highlight of this project is the TC2C facility, which converts crude oil directly into LPG and naphtha. Downstream units include high-value polymer units; however, no details are available at the time of this report.

In 2018, S-Oil started up the Phase I project, which includes an expanded Residue Upgrading Complex (RUC)that produces 780,000 tons/year of propylene, two PP lines with a combined capacity of 405,000 tons/year and a 300,000 tons/year propylene oxide line.

Saudi oil and gas giant - Saudi Aramco is the largest shareholder in S-Oil Corporation, holding about 63.4% stake.

S-Oil Corporation Phase I and II represent Saudi Aramco’s biggest investment in South Korea, utilizing avant-garde equipment and technologies that support ecological initiatives which will shrink carbon and greenhouse emission levels. For instance, its steam cracker will recycle otherwise wasted heat into power generation for the refinery while the use of TC2C technology will aid in the reduction of carbon emissions. 

Besides benefitting the economy of Ulsan, the project will also present an upbeat increase in job opportunities to the nation as it will generate up to 17,000 jobs during construction. After completion, it will provide more than 400 jobs and yield as much as 3 trillion Won to the economy.