Lummus Technology Will License Its Proprietary Technology To S-Oil Ethylene Propylene Complex In South Korea

Lummus Applauds S-OIL For Its Groundbreaking Shaheen Crude-To-Chemicals Complex

The global process technologies and value-driven energy solutions provider, Lummus Technology, applauded S-OIL for establishing the Shaheen project in South Korea. This project got the last investment decision in November of last year. When it is finished, the Shaheen complex will incorporate the largest ethylene steam cracker in the world and its initial TC2C commercial deployment, a technology converting whole crude into value-added chemicals.

According to the Chief Business Officer of Clean Fuels and Crude to Chemicals, Lummus Technology, Ron Venner, they are thrilled to honour the next phase of S-OIL in the Shaheen project, which will change petrochemical production and evolve into a more sustainable process. In enforcing TC2C, S-OIL could adjust the changing petrochemical market demands for more diverse and clean feedstocks, lower carbon footprint and boost the energy efficiency of their operations.

The latest S-OIL plant will deploy many Lummus and Chevron Lummus Global (CLG) technologies for crude processing to make propylene, ethylene, butadiene and other basic chemicals. Following its completion, the latest plant would have a production of around 3.2 million tons of petrochemicals yearly.

TC2C turns crude to value-added chemicals using an integrated technique that combines Lummus’ ethylene technology with CLG’s hydro processing catalysts and reactor technologies and Saudi Aramco’s separation and catalyst technologies.

TC2C maximises crude conversion at lower carbon intensity, improved energy efficiency and lower capital than conventional refinery/petrochemical complexes. In contrast, to any other crude processing for chemicals technology, TC2C processes low-value refinery streams, including slurry oil and pyrolysis oil can be customised to maximise olefins, aromatics or any mixture.

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Saudi Aramco is the major stakeholder of S-OIL. Saudi Aramco Technologies Company and Lummus and CLG joined forces in 2018 to form a combined development agreement for the development, commercialization and marketing of TC2C.

Shaheen Project

The mega project Shaheen (falcon in Arabic) strived to extend S-Oil’s manufacturing capacity for petrochemical products like ethylene and polyethylene.

It is the single largest investment made by Saudi Aramco in the refining and petrochemical industry in Korea.

The project will construct the biggest naphtha-fed steam cracker in the world using Saudi Aramco’s proprietary thermal crude to chemicals (TC2C) technology.

Hyundai E&C, Hyundai Engineering and DL E&C, Hyundai Engineering and Lotte E&C; Lotte will be responsible for the three package deliveries involved in the project's construction which is expected to finish in 2026 and yield 1.8 million tons of ethylene production and 750,000 tons of propylene per year. The feedstock, in turn, will be summarised to 1.2 million tons/year of petrochemicals like HDPE and LLDPE.

Transition from Crude Refining

S-Oil, the third-largest oil refiner in Korea, has been looking to diversify its business portfolio, expanding outside crude refining to restrain the adverse effects of fluctuating prices of oil on its margins.

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As a consequence of the recent investment, petrochemicals will account for around 25% of the total sales revenue of the company by 2030, up by 8% points from 17% in 2021.

Saudi Aramco owns 63.4% of S-Oil, which is regulated by the country’s de facto leader Mohammed bin Salman, Saudi Arabia's crown prince and prime minister.

About Lummus Technology

Lummus Technology is a world-class leader in the development of process technologies which make modern life conceivable and concentrate on a future that is more sustainable and low carbon. Lummus is a master licensor of clean energy, refining, petrochemical, gas processing and renewable technologies, as well as a supplier of proprietary equipment, catalysts, digitalization and related lifecycle services to consumers globally.

About Chevron Lummus Global

Chevron Lummus Global (CLG), which is a collaborative venture between Lummus Technology and Chevron U.S.A. Inc., is a top process technology licensor for refining hydroprocessing technologies as well as substitute source fuels. It is also a leading catalyst system supplier globally.

CLG provides a full bottom-of-the-barrel solution to upgrade heavy oil residues. Their research and development specialists are constantly pursuing developments in technology and catalysts that will enhance the project's operating economics.

According to the Procurement Resource article, Lummus Technology applauded S-OIL for establishing the Shaheen project in South Korea named Shaheen which will include the biggest naphtha-fed steam cracker in the world using Saudi Aramco’s proprietary thermal crude to chemicals (TC2C) technology.

The project is projected to finish in 2026 and will allow the diversification of S-Oil's business portfolio, expanding outside crude refining to restrain the adverse effects of fluctuating prices of oil on its margins.