Vaporer, Aramco invests $7 Billion

A steam cracker built by Aramco, allows the company to deploy its largest ever investment in South Korea.

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

A steam cracker built by Aramco, allows the company to deploy its largest ever investment in South Korea.

S-OIL, a subsidiary of Aramco, invests in petrochemicals

A steam cracker for the Shaheen project is being built through Aramco’s S-OIL subsidiary. This is a $7 billion investment to convert crude oil into petrochemical feedstock. Its largest investment ever in South Korea.

Aramco plans to develop one of the world’s largest refinery-integrated petrochemical steam crackers. The company’s strategy is to maximize the value chain from crude to chemical. The deal would represent the first commercialization of Aramco and Lummus Technology’s TC2C thermal crude oil technology into chemicals.

This increases the chemical yield and reduces operating costs. In 2018, the first phase of operation of the petrochemical expansion, with an investment of $4 billion, is completed. Located in Ulsan, the new plant is expected to have the capacity to produce up to 3.2 million tons of petrochemicals per year.

It should also include a polymer production facility. The steam cracker project is expected to start in 2023 and be completed in 2026. The steam cracker is expected to process the by-products of crude processing, including naphtha and off-gases. In order to produce ethylene used in the manufacture of thousands of everyday items.

The challenges of petrochemicals

Aramco President and CEO Amin H. Nasser explains the challenge of building the steam cracker in South Korea:

“The global petrochemical landscape is changing rapidly and demand growth is expected to accelerate, driven in part by rising consumption in emerging economies in Asia. That’s why S-Oil’s Shaheen is well positioned to meet the growing demand for materials that will be needed in key industries in the region. By further integrating refining and chemical processes through the first commercialization of Aramco’s thermal crude oil technology into chemicals, we aim to create a more efficient, competitive and sustainable growth platform, while paving the way for downstream expansion.”

The steam cracker should also use mixed feedstocks. Thus, it would outperform naphtha-based steam crackers in terms of overall performance.

The chemical yield could almost double to 25%. It therefore demonstrates the impact of this advanced technology. Aramco’s strategy is to expand its chemical liquids capacity to 4 million barrels per day.

Aramco is the majority shareholder of S-OIL and holds over 63% of the shares through its subsidiary Aramco Overseas Company BV. Aramco aims to create a more efficient, competitive and sustainable growth platform. It also opens the way for downstream expansion.

After six months of suspended local institutions, Nigeria's federal government restores civilian power in oil-rich Rivers State as political tensions appear to ease.
Backed by flagship projects linked to EACOP and the Tilenga and Kingfisher fields, Uganda aims to lead Africa in new oil storage additions, with a projected impact on its revenues and financial flows by 2030.
A study reveals that independent oil and gas producers supported over 3.1 million jobs and generated $129bn in taxes, representing 87% of the US upstream sector’s economic contributions.
GATE Energy has been appointed to deliver full commissioning services for bp’s Kaskida floating production unit, developed in partnership with Seatrium in the deepwater Gulf of Mexico.
A Syrian vessel carrying 640,000 barrels of crude has docked in Italy, marking the country’s first oil shipment since the civil war began in 2011, amid partial easing of US sanctions.
Canadian crude shipments from the Pacific Coast reached 13.7 million barrels in August, driven by a notable increase in deliveries to China and a drop in flows to the US Gulf Coast.
Faced with rising global electricity demand, energy sector leaders are backing an "all-of-the-above" strategy, with oil and gas still expected to supply 50% of global needs by 2050.
London has expanded its sanctions against Russia by blacklisting 70 new tankers, striking at the core of Moscow's energy exports and budget revenues.
Iraq is negotiating with Oman to build a pipeline linking Basrah to Omani shores to reduce its dependence on the Strait of Hormuz and stabilise crude exports to Asia.
French steel tube manufacturer Vallourec has secured a strategic agreement with Petrobras, covering complete offshore well solutions from 2026 to 2029.
Increased output from Opec+ and non-member producers is expected to create a global oil surplus as early as 2025, putting pressure on crude prices, according to the International Energy Agency.
The Brazilian company expands its African footprint with a new offshore exploration stake, partnering with Shell and Galp to develop São Tomé and Príncipe’s Block 4.
A drone attack on a Bachneft oil facility in Ufa sparked a fire with no casualties, temporarily disrupting activity at one of Russia’s largest refineries.
The divide between the United States and the European Union over regulations on Russian oil exports to India is causing a drop in scheduled deliveries, as negotiation margins tighten between buyers and sellers.
Russia plans to ship 2.1 million barrels per day from its western ports in September, revising exports upward amid lower domestic demand following drone attacks on key refineries.
QatarEnergy obtained a 35% stake in the Nzombo block, located in deep waters off Congo, under a production sharing contract signed with the Congolese government.
Phillips 66 acquires Cenovus Energy’s remaining 50% in WRB Refining, strengthening its US market position with two major sites totalling 495,000 barrels per day.
Nigeria’s two main oil unions have halted loadings at the Dangote refinery, contesting the rollout of a private logistics fleet that could reshape the sector’s balance.
Reconnaissance Energy Africa Ltd. enters Gabonese offshore with a strategic contract on the Ngulu block, expanding its portfolio with immediate production potential and long-term development opportunities.
BW Energy has finalised a $365mn financing for the conversion of the Maromba FPSO offshore Brazil and signed a short-term lease for a drilling rig with Minsheng Financial Leasing.

Log in to read this article

You'll also have access to a selection of our best content.