S-Oil Pushes Shaheen Commercialization
While the domestic petrochemical industry is experiencing a slump due to oversupply and deteriorating profitability, S-Oil is setting out to improve the fundamental structure of the overall industry through the Shaheen Project, which is scheduled for commercial operation next year.S-Oil explained on
The domestic petrochemical industry is currently facing challenges due to oversupply and declining profitability. However, S-Oil is taking steps to enhance the industry's foundation through the Shaheen Project, set to become operational next year. According to S-Oil, the Shaheen Project aims to create a versatile production base that maximizes the utilization of raw materials and energy efficiency.
The project will be the first to apply TC2C technology, which directly transforms crude oil and low-value fractions from the refining process into petrochemical raw materials for commercial use worldwide.
The core of the Shaheen Project is the creation of an integrated production system for refining and petrochemicals. This approach will enable the company to reduce its reliance on specific raw materials and efficiently operate a variety of materials, allowing it to adapt to price fluctuations resulting from global supply chain disruptions. S-Oil believes that achieving cost competitiveness at the basic fraction stage is crucial for gaining a market advantage in the production of high-value specialty end products.
The basic fractions produced by the Shaheen Project, such as ethylene and propylene, will be directly supplied to downstream companies within the Ulsan National Industrial Complex via branch pipeline networks. This method optimizes logistics efficiency and ensures a stable raw material supply, boosting the competitiveness of the entire domestic petrochemical value chain.
The Shaheen Project is also expected to serve as a protective measure for the domestic industry amidst ongoing large-scale integrated facility investments by China and the Middle East.
S-Oil stresses that the restructuring of the petrochemical business should focus on transitioning to low-carbon, high-value-added operations and strengthening the supply chain, moving beyond mere facility cuts.
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