Saudi Aramco recently broke ground on its US$7 billion Shaheen petrochemical project in Ulsan, South Korea. Shaheen is Aramco’s biggest investment in South Korea to date and is expected to be one of the largest integrated steam crackers in the world. It is also the first major commercial deployment of Aramco’s thermal crude to chemicals technology, that was developed in collaboration with Lummus Technology.
South Korean President Yoon and Aramco President & CEO Amin H. Nasser attended the groundbreaking ceremony.
Ministers and senior officials from both countries also attended the milestone event. The Shaheen project, which was announced in November 2022, is being developed by Aramco affiliate S-OIL and is a key part of Aramco’s regional crude to chemicals strategy.
Amin H. Nasser, Aramco President/CEO, said: “Shaheen is among Aramco’s biggest international downstream investments, representing a significant and sizeable step forward in our liquids-to-chemicals expansion and another major milestone in further strengthening our presence in Korea.”
The company invested US$4 billion in the first phase of the petrochemical expansion, completed in 2018.
Located at S-Oil’s existing site in Ulsan, the new plant will likely produce up to 3.2 million tonnes/year of petrochemicals and include a facility to produce high-value polymers. The project is expected to be completed by 2026.
Aramco holds more than 63% of S-OIL’s shares through its Aramco Overseas Company subsidiary.