S-Oil proposes Phase 2 petrochemicals project at Ulsan
S-Oil Corp., Seoul, is carrying out a feasibility study for the proposed construction of a 1.5 million-tonne/year mixed-feed cracker and downstream olefins project as part of its Phase 2 investment plan to expand its petrochemical business portfolio at its integrated refining and petrochemical operations in Ulsan, South Korea.
The steam cracker would produce ethylene and other basic petrochemicals from naphtha and off-gas burned as fuel in the 669,000-b/d Onsan refinery in Ulsan, giving the company an added advantage over feedstock sourcing and cost competitiveness, S-Oil said.
Olefin downstream facilities will produce an increased volume of high value petrochemical products including polyethylene and polypropylene.
The new project, if realized, would be built on 400,000 sq m of land S-Oil purchased from Hyundai Heavy Industries Co. Ltd. near the Onsan refinery to possibly create a megascale, single-location plant and secure higher economics and operational efficiency, according to the operator.
The company said it expects to invest more than 5 trillion won into the project until 2023.
The Phase 2 project, once approved, would serve as a new growth engine for S-Oil following completion of the company’s new 4.8-trillion won residue upgrading complex (RUC) and olefin downstream complex (ODC) in Ulsan (OGJ Online, June 20, 2017; Aug. 22, 2016).
The operator, however, did not disclose a timeline for when it would take final investment decision on the Phase 2 investment project.
RUC-ODC project update
The RUC-ODC projects come as part of the South Korean operator’s overall program to modernize and expand its integrated refining and petrochemical operations as well as improve profitability and secure long-term competitiveness at Ulsan—which includes the Onsan refinery—by enabling increased conversion of low-cost heavier hydrocarbons into high-value olefins and fuels.
The RUC will add a 63,000-b/d residue hydrodesulfurization (Hyvahl) unit as well as the 76,000-b/d high-severity residue fluid catalytic cracker to produce gasoline (21,000 b/d), alkylate (14,000 b/d), and methyl tertiary butyl ether (370,000 tonnes/year), while the ODC will add a 405,000-tpy polypropylene plant and 300,000-tpy propylene oxide plant.
Reaching mechanical completion during second-quarter 2018 and now in their commissioning, feed-in, and startup phases, the RUC-ODC projects are on schedule for on-spec production and full-ramp up during third-quarter 2018, S-Oil said in a July earnings presentation.
Contact Robert Brelsford at [email protected].
