South Korean oil refiner and aromatics producer S-Oil, majority owned by Saudi Aramco, is looking into the feasibility of building a mixed-feed 1.5 million t/y cracker and downstream units.

The project is part of the company’s second-phase investment program to expand its petrochemical business. S-Oil expects to invest more than 5 trillion South Korean won ($4.4 billion) in the project by 2023.

The steam cracker will produce ethylene from naphtha and off-gas burned as fuel in the refinery, which S-Oil said will give the company an added advantage over feedstock sourcing and cost competitiveness. Downstream olefin derivatives including PE and PP will form part of the complex’s product slate.

S-Oil intends to build the complex on a 400,000m² site that it purchased from Hyundai Heavy Industries near its oil refinery in Onsan, which the company said will secure high economics and operational efficiency.

The Seoul-headquartered company said it is confident that the project will put the company in a better position to navigate the rapid changes in the business environment brought on by shale oil and electric vehicles, among others.

Under a recent 4.8 trillion won diversification program, S-Oil invested in a residue upgrade and olefins complex at Ulsan, which included gasoline and methyl-tert-butyl ether plants and an alkylation unit. The residue fluid catalytic converter produces 600,000 t/y of propylene,   feeding plants producing 405,000 t/year PP and 300,000 t/y propylene oxide.

S-Oil is also a major producer of paraxylene, with a total capacity of 1.85 million t/y.