South Korea: Petrochemicals S-Oil to Construct 1,500 KTA Mixed Feed Cracker Plant along with Olefin Downstream Facilities
In line with the company’s expansion plans for petrochemicals, the firm will be investing more than 4.47 billion dollars in this project. The steam cracker will produce ethylene and other basic petrochemicals whereas the Olefin downstream facilities will produce an increased volume of high value petrochemical products.
South Korea – S-Oil has recently announced that it is conducting a feasibility study for building a mixed feed cracker plant with a capacity of 1,500 KTA along with olefin downstream facilities as part of its phase II investment project to expand its petrochemical business portfolio. The company is expected to invest more than 4.47 billion dollars into the project until 2023.
The steam cracker will produce ethylene and other basic petrochemicals from naphtha and off-gas burned as fuel in the refinery, thus giving the company an added advantage over feedstock sourcing and cost competitiveness. Olefin downstream facilities will produce an increased volume of high value petrochemical products including PE and PP.
The new facilities will be built on an area of 400,000 sq m which S-Oil purchased from Hyundai Heavy Industries near its Onsan Refinery to possibly create a mega-scale single location plant and secure higher economics and operational efficiency, if realised.
S-Oil said the project will significantly benefit the economy, too, as it will create 2.7 million man-days during construction, 400 regular jobs, reinvigorate the construction sector and increase exports.
Phase II project, once approved, will serve as a new growth engine post-RUC/ODC that will drive the firm’s sustainable growth by diversifying its business portfolio, sharpening competitiveness and building a more stable income structure.