Saudi Aramco and S-Oil has also signed a Memorandum of Understanding to collaborate on a £4.7bn Steam Cracker & Olefin Downstream Project
Image: Saudi Aramco and S-Oil has also signed a Memorandum of Understanding. Photo: Courtesy of Saudi Arabian Oil Co.
Saudi Arabian oil company Saudi Aramco has inaugurated S-Oil’s new residue upgrading complex and olefin downstream complex, advancing its global chemicals growth strategy.
The new facilities are set to feature the latest refinery technologies, which helped S-Oil in increasing its petrochemical portion from 8% to 13%. In addition, the new facilities are expected to include high-value products such as propylne and gasoline.
The inauguration ceremony of the complex was attended by the Saudi Arabia Crown Prince, Defense Minister and Deputy Prime Minister Mohammed bin Salman Al-Saud, and Republic of Korea President Moon Jae-in.
Aramco Overseas Company holds a major stake in S-Oil, which is the third-largest refiner in South Korea.
Saudi Aramco president and CEO Amin H. Nasser said: “Today‘s inauguration marks a historic moment for both S-Oil and Saudi Aramco. S-Oil serves as a role model for Saudi Aramco’s international downstream strategy and plays an important role by providing the vital energy needed for economic growth in South Korea.
“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 signs MoU for £4.7bn downstream project
Along with inauguration, a Memorandum of Understanding has also been signed between the two companies to collaborate on a £4.7bn Steam Cracker & Olefin Downstream Project, which is anticipated to be completed by 2024.
Saudi Aramco said that the new advanced steam cracker project would produce ethylene and other basic chemicals out of naphtha and refinery off-gas.
The new agreement is expected to support Saudi Aramco’s plan to increase its global petrochemicals footprint over the next decade.
Furthermore, the agreement helps deployment of Saudi Aramco’s Thermal Crude-to-Chemicals Technology and shift S-OIL’s focus from ‘oil to chemicals’ to better position the company in the future energy market.
Saudi Aramco claimed that it has initially invested in S-Oil in 1991. The partnership has resulted in an increase of the refining capacity from 90,000bpd in 1990 to roughly 700,000bpd in 2018.