Korean refiners expand petrochemical business

South Korean oil refining companies are expanding their business in the petrochemical industry. This is because oil refining is highly vulnerable to international oil price and refining margin fluctuations and environmental regulations are increasing worldwide.

S-Oil decided to invest US$7 billion in the industry in order to build the world’s largest steam cracker complex in Ulsan. The construction is scheduled for 2023 to 2026, the new facility is expected to output 3.2 million tons of petrochemical products a year, and the company’s petrochemical business ratio is forecast to rise from 12 percent to 25 percent.

GS Caltex, in the meantime, initiated olefin production in Yeosu on Nov. 11. The company’s new mixed feed cracker complex will produce a year 750,000 tons of ethylene, 500,000 tons of polyethylene, 410,000 tons of propylene, 240,000 tons of mixed C4, and 410,000 tons of pyrolysis gasoline.

Hyundai Chemical, co-founded by Hyundai Oilbank and Lotte Chemical, recently built a heavy-feed petrochemical complex at Hyundai Oilbank’s Daesan Plant located in Seosan. Unlike existing petrochemical plants using naphtha and LPG as raw materials, the complex of Hyundai Chemical uses less expensive heavy oil fractions and by-product gases. It has been designed to produce 850,000 tons of ethylene and 500,000 tons of propylene a year.

Source: BusinessKorea