Aramco is making its biggest ever investment in South Korea to develop one of the world ’ s largest refinery-integrated petrochemical steam crackers through its S-OIL affiliate , in line with the company ’ s strategy to maximise the crude to chemicals value chain .
Text by Aramco
Large petrochemical crackers to be launched in South Korea
Photo © Aramco
The USD 7 billion Shaheen project aims to convert crude oil into petrochemical feedstock and would represent the first commercialisation of Aramco and Lummus Technology ’ s TC2C thermal crude to chemicals technology , which increases chemical yield and reduces operating costs . It follows an earlier USD 4 billion investment into the first phase of the petrochemical expansion completed in 2018 . Located at S-Oil ’ s existing site in Ulsan , the new plant is planned to have the capacity to produce up to 3.2 million tons of petrochemicals annually and include a facility to produce high-value polymers . The project is expected to start in 2023 and be completed by 2026 .
An aspiring gamechanger
The steam cracker is expected to process by-products from crude processing , including naphtha and off-gas , to produce ethylene — a building block petrochemical used to make thousands of everyday items . The plant is also expected to produce propylene , butadiene and other basic chemicals . Aramco President & CEO , Amin H . Nasser , said : “ The global petrochemical landscape is rapidly evolving with demand growth anticipated to accelerate , driven in part by rising consumption from Asia ’ s emerging economies . That is why S-Oil ’ s Shaheen is well positioned to meet rising demand for the materials that will be required across the region ’ s key industries . By further integrating refining and chemical processes through the first commercialisation of Aramco ’ s thermal crude to chemicals technology , we aim to create a more efficient , competitive and sustainable platform for growth , while paving the way for further downstream expansion .”
Aramco Senior Vice President of Downstream , Mohammed Y . Al Qahtani , said : “ Shaheen aspires to be a gamechanger not only for S-Oil in South Korea , but also for our global chemicals business , allowing us to process a greater range of feedstocks in a more efficient and less energyintensive way . The project represents the first large-scale deployment of Aramco ’ s thermal crude to chemicals technology and shows how , through better design , we can contribute to the transition to more efficient and more sustainable production processes .”
Expected results
The new steam cracker is planned to use mixed feedstocks , outperforming naphthabased crackers in terms of overall efficiency and performance . Upon project completion , S-Oil ’ s chemical yield based on volume could almost double to 25 %, which demonstrates the impact of this cutting-edge technology , complementing Aramco ’ s strategy to expand its liquids to chemicals capacity to up to 4 million barrels per day .
About S-Oil Established in 1976 , S-Oil operates its refinery in Ulsan , a province in the south-east of Korea , with a refining capacity of 669,000 barrels / day and high value downstream production facilities , including one of the world ’ s largest scale of para-xylene ( PX ) production facilities . S-Oil ’ s petrochemical business encompasses BTX production and naphtha reforming , and more . Aramco is the majority shareholder of S-OIL , holding more than 63 % of the company ’ s shares through its Aramco Overseas Company B . V . subsidiary .
50 Valve World February 2023 www . valve-world . net