Saudi Aramco inaugurates S-Oil refinery expansion project in South Korea

Saudi Aramco inaugurated today Seoul-headquartered S-Oil’s new Residue Upgrading Complex and Olefin Downstream Comple­x as a push towards its chemicals growth strategy.

The new facilities, located in Ulsan in South Korea, include latest refinery technologies, which have raised S-Oil’s petrochemical portion from 8 percent to 13 percent and comprises high-value products such as propylene and gasoline.

The inauguration of the complex was attended by Saudi Crown Prince Mohammed Bin Salman and Moon Jae-in, President of the Republic of Korea, along with other top officials.

“These two new facilities will supply high-value products to major Korean industries, whose global brands are part of our everyday lives and rank among the world’s very best in technology, innovation, creativity, and quality,” Saudi Aramco President and CEO, Amin Nasser, said.

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The inauguration also included the signing of a memorandum of understanding (MoU) between the two companies to collaborate on a $6 billion Steam Cracker & Olefin Downstream Project, which is expected to be completed by 2024.

The new steam cracker is expected to produce ethylene and other basic chemicals out of naphtha and refinery off-gas.

The new agreement will further include the deployment of Saudi Aramco’s Thermal Crude-to-Chemicals technology, shifting S-Oil’s focus from “oil to chemicals” to position the company in the future energy market, the oil giant said in a statement.