S-Oil Embarks on Strengthening Petrochemical Competitiveness with the Shaheen Project

World’s First Commercial Application of TC2C:
Enhancing Cost Competitiveness

Responding to Supply Chain Challenges
with Diversified Feedstocks and High-Efficiency Facilities

Domestic Supply of Basic Feedstocks:
Strengthening the Ulsan Value Chain

S-Oil is embarking on the establishment of a petrochemical production base with cost competitiveness, enhanced energy efficiency, and flexible feedstock utilization through its Shaheen Project.

S-Oil plant exterior. S-Oil

S-Oil announced on the 18th that, through the Shaheen Project, it plans to contribute to improving the fundamentals of the domestic petrochemical industry and strengthening its global competitiveness.

The Shaheen Project will mark the world’s first commercial adoption of 'TC2C (Thermal Crude to Chemicals)' technology, which converts low value-added streams from crude oil and refining processes into petrochemical feedstocks. The project will also incorporate high-efficiency steam crackers and power generation facilities, as well as waste heat recovery and process optimization technologies.

By doing so, S-Oil aims to increase feedstock and energy utilization efficiency and reduce carbon emissions by over 20% compared to the initial design. The company explained that by lowering dependency on specific feedstocks and enabling adjustments to feedstock composition in response to market conditions, it can flexibly respond to price and supply fluctuations.

A portion of the basic feedstocks such as ethylene and propylene produced by the Shaheen Project will be supplied via branch pipeline networks to downstream companies in the Ulsan National Industrial Complex. The company expects that substituting some of the basic feedstocks that are currently sourced externally with domestic production will enhance feedstock supply stability and logistical efficiency.

The Ulsan Institute recently evaluated in its 'Ulsan Economic and Social Brief' that the Shaheen Project will serve as an opportunity to shift Ulsan from a refining-centered base to a high-value-added chemical material production hub and to bolster the competitiveness of the regional industrial ecosystem.

S-Oil also emphasized that a competitive foundational feedstock production base is necessary for the high value-added transformation of the domestic petrochemical industry. This is due to the intensifying global supply competition as large-scale refinery and petrochemical integrated facility investments continue in China and the Middle East.

Accordingly, the company believes that petrochemical business restructuring should encompass not only reducing excess capacity, but also investing in high-efficiency facilities, transitioning to low carbon and high value-added production, and strengthening supply chain stability.

An S-Oil official stated, "The Shaheen Project is a long-term investment that has been pursued over several years in line with the direction of strengthening industrial competitiveness and investing in advanced, high-efficiency facilities," adding, "Through successful completion and stable operation, we will contribute to enhancing the global competitiveness of the domestic petrochemical industry."

This content was produced with the assistance of AI translation services.