Ulsan, South Korea – S-Oil, a leading South Korean oil refiner, announced that its $7 billion Shahin Project is progressing smoothly and is over 55% complete. The project, which aims to transform crude oil into petrochemical feedstocks, is slated for completion in the first half of 2025 and will begin commercial operations in the second half of the year.

The Shahin Project involves the construction of a new refining complex adjacent to S-Oil's existing Ulsan refinery. The complex will house a TC2C (Thermal Crude to Chemicals) unit, a steam cracker, and storage facilities. A polymer plant is also being built in nearby Uljugun to produce high-value-added polymer products from the ethylene produced by the steam cracker.

The TC2C unit, based on Saudi Aramco's groundbreaking technology, will be the first commercial unit of its kind in the world. It will enable S-Oil to produce petrochemical feedstocks with greater efficiency and higher yields compared to traditional refining methods.

The steam cracker will produce ethylene, a key building block for plastics and other petrochemical products. S-Oil plans to supply the ethylene and other basic feedstocks produced by the Shahin Project to domestic petrochemical companies through pipelines. New pipeline networks and logistics infrastructure are being built to support this. S-Oil has also signed long-term supply agreements with petrochemical companies in the Ulsan and Onsan industrial complexes.

"The Shahin Project will provide timely and stable feedstock supplies to downstream companies, reducing transportation costs within the value chain," said an S-Oil representative.

In addition to the new production facilities, S-Oil is building a 150-megawatt natural gas power plant to supply electricity to the Shahin Project. This will improve operational stability and reduce costs by replacing electricity purchased from external sources. The power plant will also feature a waste heat recovery system to further enhance energy efficiency and reduce emissions.

S-Oil believes the Shahin Project will play a crucial role in strengthening the competitiveness of the domestic petrochemical industry and contribute to the continued growth of the national economy.