Latest news with #ShaheenProject
Korea Herald
13-05-2025
- Business
- Korea Herald
Saudi Aramco reaffirms commitment to Korea's Shaheen project
Downstream chief visits Ulsan site, praises progress on $6.5b project Saudi Aramco, the world's largest oil company, has pledged continued support for the successful completion of the 9.26 trillion won ($6.5 billion) Shaheen project in Korea, S-Oil said Tuesday. According to S-Oil, Mohammed Y. Al-Qahtani, Downstream President at Saudi Aramco, which holds a majority stake in S-Oil, visited the construction site of the Shaheen project at the Onsan National Industrial Complex in Ulsan on the previous day. 'I came to Korea mainly to visit the project site before construction work peaks, and to show Aramco's appreciation to you and your work,' said Al-Qahtani, as he looked around the area. 'The Shaheen Project is a testament to Aramco's continuing commitment to petrochemicals. I find your work so inspiring not just for S-Oil's future growth, but for the global petrochemical market as a whole.' The Saudi Aramco executive underwent a thorough on-site review of Korea's largest petrochemical investment project including the thermal-crude-to-chemicals, or TC2C, which is Saudi Aramco's first application of the new technology in the world, and left his signature on the recently installed 118-meter-high propylene tower to wish for safe construction and the success of the project. 'As an engineer who has been involved in many large-scale projects, I know firsthand how much effort goes into such a major undertaking, and I recognize your sense of purpose: to deliver the Project on time with the highest quality,' said Al-Qahtani. After holding the ground-breaking ceremony in March 2023, the Shaheen project's construction progress stood at about 69 percent as of Tuesday, according to S-Oil. The project is expected to be mechanically completed in the first half of next year. S-Oil pointed out that the Shaheen project will enhance the competitiveness of Korea's petrochemical industry, which is facing challenges due to global demand growth slowdown, large-scale facility expansions in China and continued oversupply in the region. When the Shaheen project's full-scale production takes effect in the second half of next year, the plant is expected to have annual production capacities of 1.8 million tons of ethylene, 770,000 tons of propylene, 200,000 tons of butadiene and 280,000 tons of benzene. "We plan to supply basic feedstock produced at the Shaheen Project, which has excellent cost competitiveness and high energy efficiency, mainly through pipelines to domestic petrochemical downstream companies," said an S-Oil official. "By reliably supplying raw materials on time to downstream companies, we expect to not only save logistics cost within the value chain but also create a competitive petrochemical industrial cluster, thereby leaving a positive impact in terms of revitalizing the local economy and strengthening Korea's industrial competitiveness.'
CNA
28-04-2025
- Business
- CNA
S-Oil posts refining, petchem losses; expects US tariffs to affect margins in Q2
SEOUL :South Korea's S-Oil, majority owned by Saudi Aramco, posted losses in the first quarter from its refining and petrochemical units and expects second-quarter margins to be impacted by U.S. tariff negotiations and market volatility. S-Oil reported an operating loss of 21.5 billion won ($14.93 million) in the first three months of 2025, compared with a profit of 454.1 billion won a year earlier, it said in a statement on Monday. The company's revenue for the first quarter fell 3.4 per cent on-year to 8.99 trillion won. Its refining division posted an operating loss of 56.8 billion won in the reported quarter, flipping from a profit of 250.4 billion won a year ago, due to sluggish demand amid economic uncertainty as well as delays in scheduled maintenance, S-Oil said. Losses in its petrochemical division more than doubled to 74.5 billion won from the previous quarter, the company added. S-Oil operated its 669,000 barrels-per-day (bpd) oil refinery in the southeastern city of Ulsan at 94 per cent of capacity, compared with 93 per cent during full-year 2024. Looking ahead, S-Oil expects second-quarter refining margins to be impacted by developments in U.S. tariff negotiations amid heightened global market volatility. "Ongoing U.S. tariff tensions may weigh on oil demand forecasts," S-Oil said in a presentation. "However global uncertainties are expected to ease gradually with the progress in trade negotiations." Meanwhile, S-Oil's residue fluid catalytic cracking (RFCC) unit is scheduled to undergo maintenance in the fourth quarter. Separately, the company is targeting mechanical completion for the Shaheen Project in the first half of 2026. The $7 billion project aims to produce up to 3.2 million metric tons of petrochemicals annually from crude oil. ($1 = 1,439.7000 won)
Korea Herald
27-03-2025
- Business
- Korea Herald
Hyundai E&C lifts Korea's heaviest petrochemical equipment into place
Hyundai Engineering & Construction announced Thursday that it has successfully installed Korea's largest propylene fractionator at S-Oil's Shaheen ethylene facility construction site in Ulsan. The newly installed fractionator, a key component in propylene production, stands 118 meters tall, has a diameter of 8.5 meters and weighs 2,370 metric tons — making it the heaviest piece of petrochemical equipment ever built in the country. Hyundai E&C transported the massive structure, equivalent in height to a 50-story apartment building, from the unloading dock to the construction site. The company successfully erected it in just 14 hours using a tower lifting system. The Shaheen Project is a 9.3 trillion won ($6.8 billion) investment to build advanced petrochemical facilities, aimed at strengthening the oil refiner's growth drivers. The project, located within the Onsan National Industrial Complex, spans 880,000 square meters, an area roughly the size of 120 soccer fields. As the lead contractor, Hyundai E&C is executing Package 1 of the ethylene facility construction in collaboration with Hyundai Engineering and DL E&C. This package includes the construction of the world's largest steam cracker, incorporating thermal-crude-to-chemical technology, or TC2C, that directly converts crude oil into petrochemical feedstocks. Beyond the propylene fractionator, the cracking heater measures 68 meters in height and weighs 3,200 tons. The heater plays a vital role in breaking down raw materials such as naphtha and LPG through thermal decomposition to produce ethylene and propylene. According to Hyundai E&C, the project's civil engineering phase alone requires 333,749 cubic meters of concrete — equivalent to the load carried by 60,000 ready-mix concrete trucks. Additionally, 98,634 tons of steel will be used, enough to construct 14 Eiffel Towers, as told by the company. Hyundai E&C is committed to ensuring the world's first commercial operation of TC2C technology. With construction over 60 percent complete, the company plans to finish steam cracker installation in the first half of the year. Once operational, the facility will produce 1.8 million tons of ethylene annually, along with other key petrochemicals. Trial operations will start in the second half of this year. Following the Shaheen project's completion in the first half of 2026, commercial production of ethylene, basic petrochemicals and polyethylene is expected to begin in the second half of the year. "Despite the enormous scale, Hyundai E&C's extensive global project experience and EPC expertise have enabled us to stay ahead of schedule," a Hyundai E&C official said. "We are confident that we will complete the project by June next year, setting a new milestone in Korea's petrochemical plant construction industry."
