S-Oil's Shahin Project Construction Halted Due to Fatal Accident

By Lee nakyeong Posted : June 29, 2026, 17:36 Updated : June 29, 2026, 17:36
Overview of S-Oil's Shahin Project construction site [Photo=Yonhap News]
Construction on S-Oil's Shahin Project, the largest investment initiative in South Korea's petrochemical sector, has been halted due to a fatal accident just one day before its scheduled completion. The suspension of work has raised concerns about the project's commissioning and commercial operation planned for later this year.

According to industry sources on June 29, S-Oil temporarily ceased operations at the Shahin Project site in the Onsan National Industrial Complex following a fatal incident that occurred recently. On June 26, a worker from a subcontractor of Hyundai Engineering was killed while dismantling formwork in an area where underground electrical protection structures were being installed. It is believed that the collapse of soil led to the tragic incident.

This is not the first instance of a fatality at the S-Oil site. On May 25, a worker was found dead inside a drum (D-230202) in an area managed by DL E&C. Following that incident, DL E&C halted work in confined spaces and resumed construction earlier this month after conducting safety inspections and implementing measures to prevent future accidents.

The Ulsan Regional Employment and Labor Agency has issued a work stoppage order for the area where the accident occurred and is investigating the circumstances of the incident, including potential violations of the Industrial Safety and Health Act and the Serious Accidents Punishment Act. The timeline for resuming construction will depend on the findings of the investigation and safety assessments by relevant authorities.

The Shahin Project represents a historic investment of 9.3 trillion won in South Korea's petrochemical industry. It aims to enhance the production competitiveness of basic petrochemical products, such as ethylene, by applying TC2C (Thermal Crude to Chemicals) technology, which directly converts crude oil into petrochemical feedstock.

An S-Oil representative stated, "Work in the area where the accident occurred has been temporarily halted. The timing for resuming construction will be determined based on the results of investigations and safety assessments by relevant authorities."



* This article has been translated by AI.

Copyright ⓒ Aju Press All rights reserved.