S-Oil announced on August 18 that it will contribute to strengthening the global competitiveness of South Korea's petrochemical industry through the Shaheen Project, which commercializes TC2C technology for the first time in the world.
The Shaheen Project will apply TC2C (Thermal Crude to Chemicals) technology to convert low-value fractions from crude oil and refining processes into petrochemical feedstock.
By combining high-efficiency steam crackers, power generation facilities, waste heat recovery, and process optimization technologies, the project aims to enhance the efficiency of raw material and energy use. Additionally, design improvements are expected to reduce carbon emissions by more than 20% compared to the initial design, thereby increasing cost competitiveness while also improving energy efficiency and carbon emissions.
Another significant advantage is the ability to utilize various raw materials, which reduces dependence on specific sources and allows for flexible raw material composition based on market conditions. Recent concerns over supply disruptions of naphtha through the Strait of Hormuz have highlighted the importance of raw material flexibility and procurement stability.
The integrated production system based on refining and petrochemical processes will enable a more flexible response to fluctuations in raw material prices and supply due to supply chain shocks, enhancing cost competitiveness and supply chain resilience.
The ethylene and propylene produced in the Shaheen Project will be supplied to downstream companies in the Ulsan National Industrial Complex through a dedicated pipeline network. As Ulsan currently relies on external imports for part of its basic petrochemical feedstock, the Shaheen Project is expected to strengthen domestic production and enhance self-sufficiency in raw materials. This is anticipated to improve supply stability and logistics efficiency, thereby contributing to the competitiveness of the domestic petrochemical value chain.
The Ulsan Research Institute, a policy research organization funded by the city of Ulsan, recently evaluated in its 'Ulsan Economic and Social Brief' that the Shaheen Project will transform Ulsan from a simple refining hub into a global center for high-value chemical materials, enhancing the competitiveness of the regional industrial ecosystem based on the dedicated pipeline network.
S-Oil explained that a competitive foundation for producing basic petrochemicals is a key element supporting the high-value transition of the domestic petrochemical industry. Without securing cost competitiveness in the basic petrochemical stage, it will be difficult for specialty products to achieve price competitiveness in the final market.
In this context, large-scale investments in integrated refining and petrochemical facilities, including Crude Oil-to-Chemicals (COTC) projects that directly convert crude oil into petrochemical feedstock, continue in overseas markets such as China and the Middle East.
S-Oil emphasized that business restructuring should focus on enhancing overall industry competitiveness through reducing excess capacity, investing in competitive facilities, transitioning to low-carbon processes, and strengthening supply chain stability.
S-Oil stated, "The Shaheen Project is a long-term investment that has been pursued for several years in line with the government's ongoing efforts to strengthen industrial competitiveness and invest in advanced, high-efficiency facilities. We aim to contribute significantly to securing sustainable competitiveness for the domestic petrochemical industry in the global market through the successful completion and stable operation of the project."
Meanwhile, the Shaheen Project represents the largest single investment in the history of the domestic petrochemical industry, with approximately 9.258 trillion won allocated. It is currently under construction in the Onsan National Industrial Complex in Ulsan and is approaching commercial operation next year after completing major equipment construction.
* This article has been translated by AI.
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