● S-OIL announces mega-scale SC&D Project just prior to New Complex Inauguration Ceremony
● Majority shareholder Saudi Aramco pledges full support into S-OIL’s “future growth through investment”
● ‘Model investor’ S-OIL to invest USD 6 billion to drive innovative growth from ‘crude oil to chemicals’
S-OIL Representative Director Hussain A. Al-Qahtani said the company signed MOU with Saudi Aramco on new petrochemical investment project. On June 25th, Saudi Aramco President & CEO Amin H. Nasser and Chairman of S-OIL Board of Directors Kim Chulsu met at Conrad Seoul and discussed to cooperate on S-OIL’s phase two investment project called SC&D (Steam Cracker & Olefin Downstream) and introduction of Saudi Aramco’s TC2C (Thermal Crude to Chemicals) technology.
SC&D Project, which is the phase two petrochemical investment project following RUC/ODC Project, will build a world scale cracker that produces ethylene and other basic chemicals out of naphtha and refinery off-gas and olefin downstream facilities that produce such high value products as polyethylene and polypropylene. Total investment is approximately USD 6 billion until 2024. Saudi Aramco will take the MOU as a platform to support S-OIL’s successful delivery of the project by leveraging its steam cracker experience, R&D skills around olefin downstream process, products and sales capabilities.
The two parties also agreed to work together on commercializing TC2C (Thermal Crude to Chemicals) technology, developed by Saudi Aramco, and further developed and demonstrated in partnership with McDermott and Chevron Lummus Global. This TC2C technology, when implemented, will hopefully reap fruits as S-OIL has a proven record of commercializing many new technologies and running new refining and petrochemical units as part of mega-scale projects.
Saudi Aramco is the world’s largest energy and petrochemical company and its program to develop C2C technology that converts crude oil into chemical products via optimal route is part of its long-term vision. TC2C is the most advanced among the wide variety of CTC researches underway at Saudi Aramco and its commercialization is just around the corner.
◆ USD 10.2 billion investment in phase one/two petrochemical investment projects are a big stride towards Vision 2025
S-OIL’s USD 4.2 billion phase one petrochemical project RUC/ODC widened S-OIL’s business portfolio to olefin downstream and raised its petrochemical portion from 8% to 13%. The company laid the foundation for sustainable growth by building a balanced business portfolio between globally-competitive fuel business and enlarged petrochemical business. Phase two investment follows the inauguration of the project’s first phase that began in 2016. The completion ceremony was held on June 26th.
S-OIL purchased around 400,000㎡ of land near its Onsan Refinery in Ulsan from Hyundai Heavy Industries for SC&D Project. The company expects the new mega-scale Project will give it an upper hand in economics and operational efficiency. By mobilizing 2.7 million workers on an annual average basis throughout the construction and creating 400 permanent jobs, S-OIL will contribute to Korea’s job market but also vitalize the nation’s construction industry and boost exports.
