S-OIL is conducting a feasibility study into building a mixed feed cracker with the size of 1,500KTA and 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 KRW 5 trillion 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 a 400,000㎡ land 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 realized.

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 S-OIL’s sustainable growth by diversifying its business portfolio, sharpening competitiveness and building a more stable income structure. S-OIL is confident that it will put the company in a better position to navigate through the rapid changes in the business environment brought on by shale oil and electric vehicles, among others, and put it closer to achieve Vision 2025 of becoming the most competitive and admired integrated energy and chemical company.

The market also took positive note of it by saying S-OIL’s back-to-back investment will propel it to become the global leader in aromatics and olefin and possibly bring a seismic shift to the refining and petrochemical industry.