S-Oil/Sabic tie up in PE supply deal; worth US$3.7 bn

South Korea’s S-Oil Corp., the country’s third-largest oil refiner by sales, has signed a US$3.7 billion agreement with Saudi Basic Industries Corp. (Sabic) to cooperate on exports of polyethylene (PE) products. The agreement runs for five years, from January 2026 through December 2030.

Under the five-year deal, Sabic will handle the global marketing of PE products produced by S-Oil, the company said in a press release.

Sabic is an affiliate of Saudi Aramco, which holds a 63.4% stake in S-Oil.

The PE products covered by the agreement will be produced at S-Oil’s new petrochemical plant currently under construction in Korea, a company spokesperson said.

S-Oil is building a US$7 billion petrochemical complex under its Shaheen project, with operations scheduled to begin in late 2026.

The facility, located next to the company’s existing refinery in Ulsan, about 360 km southeast of Seoul, will produce key petrochemical products, including ethylene, propylene and butadiene.

The long-term contract is expected to enhance sales stability and competitiveness in a volatile global PE market, representing a major step for the Shaheen project.