S-Oil says Shaheen Project will boost competitiveness of South Korea's petrochemical industry

S-Oil said Tuesday that its Shaheen Project will help strengthen the global competitiveness of South Korea's petrochemical industry.

The project marks the world's first commercial application of TC2C (Thermal Crude to Chemicals) technology, which converts crude oil and low-value fractions from the refining process into petrochemical feedstocks.

The project combines the TC2C process with high-efficiency steam crackers, power generation facilities, and waste heat recovery and process optimization technology to improve feedstock and energy efficiency. Additional design improvements have also cut carbon emissions by more than 20 percent compared with the original design.

The facility was designed to achieve greater cost competitiveness than conventional production methods while also securing advantages in energy efficiency and carbon performance.

Feedstock flexibility is another key strength. By reducing dependence on any single raw material, the project allows the feedstock mix to be adjusted in response to market conditions.

Ethylene, propylene and other basic petrochemical products generated by the Shaheen Project will be supplied to downstream companies within the Ulsan National Industrial Complex through a dedicated pipeline network.

Because Ulsan currently relies on imports for some of its basic petrochemical feedstock demand, the Shaheen Project is expected to replace those imports with domestic production, strengthening the region's feedstock self-sufficiency. The shift is also expected to improve supply stability and logistics efficiency, contributing to the competitiveness of South Korea's broader petrochemical value chain.

The Ulsan Research Institute, a policy research body funded by the city of Ulsan, recently assessed in its "Ulsan Economic and Social Brief" that the Shaheen Project would transform Ulsan from a simple refining hub into a world-class base for high-value chemical materials, and that the dedicated pipeline network would serve as a catalyst for strengthening the region's industrial ecosystem.

"The Shaheen Project is a long-term investment that we have pursued for years in line with the government's ongoing push to strengthen industrial competitiveness and invest in advanced, high-efficiency facilities," an S-Oil official said. "Through the project's successful completion and stable operation, we will make a tangible contribution to helping South Korea's petrochemical industry secure sustainable competitiveness in the global market."