Saudi Aramco (Saudi Arabian Oil Company) has inaugurated South Korean oil refinery, S-Oil’s new Residue Upgrading Complex and Olefin Downstream Complex in Ulsan, South Korea.
The new facilities feature the latest refinery technologies, which have raised petrochemical portion of South Korea’s third largest refiner from 8% to 13% and includes high-value products such as propylene and gasoline.
Saudi Aramco became single largest shareholder of S-OIL with its acquisition of an S-OIL stake in 2015 from South Korean conglomerate, Hanjin Group.
The inauguration also included the signing of a Memorandum of Understanding (MOU) between the two companies to collaborate on a US$6 billion steam cracker & olefin downstream project, which is expected to be completed by 2024. The new world class steam cracker will produce ethylene and other basic chemicals out of naphtha and refinery off-gas.
This new agreement supports Saudi Aramco’s plan to increase its global petrochemicals footprint over the next decade. Saudi Aramco also said that it will further include the deployment of it’s Thermal Crude-to-Chemicals Technology, shifting S-OIL’s focus from “oil to chemicals” to better position the company in the future energy market.