S-OIL’s massive petrochemical project, the SHAHEEN Project, under construction at the Onsan National Industrial Complex in Ulsan, has reportedly reached a completion rate in the high 90% range, with mechanical completion nearing. The company reportedly reaffirmed its goal of completing commissioning by year-end and beginning commercial operation in early next year.
The SHAHEEN Project is S-OIL’s largest-ever investment, reportedly aimed at expanding its refining-centered business structure into petrochemicals and energy through the construction of a steam cracker (basic olefins unit) and polymer plants. Notably, it will be the world’s first commercial application of TC2C (Thermal Crude to Chemicals), a proprietary process technology of parent company Saudi Aramco, applying a new process that converts crude oil directly into petrochemical feedstock.
Total investment is reportedly KRW 9.258 trillion, the largest in Korean petrochemical industry history. As of the May earnings announcement, the completion rate reportedly reached 96.9%. While the original target was mechanical completion in June this year, some media have reported the final completion timeline could be pushed to year-end, so outlooks on the completion timing reportedly vary somewhat. Once operational, the plant plans to produce basic olefins annually including 1.8 million tons of ethylene, 770,000 tons of propylene, 200,000 tons of butadiene, and 280,000 tons of benzene.