[ Hyundai E&C has begun construction of the Shaheen Project, which marks Aramco's biggest ever investment in South Korea. The photo shows Hyundai E&C (CEO Yoon Young-joon, 3rd from left) and other officials attending the Shaheen Project groundbreaking ceremony on the 9th and taking a commemorative photo. ]
Hyundai Engineering & Construction (Hyundai E&C) and Hyundai Engineering (Hyundai ENG) broke ground for the Shaheen Project, which aims to build the largest petrochemical facility in the history of the South Korean petrochemical industry, while announcing the project’s official kick-off.
The Shaheen Project is a project in which S-Oil invests 9.26 trillion won to build a high value-added petrochemical production facilities.
It is the largest investment in South Korea of Aramco, S-Oil's largest shareholder and Saudi state-run oil and natural gas company, and the goal is to high value-added petrochemical products such as polyethylene (PE) through large-scale facilities including the world's largest Steam Cracker Complex*, where TC2C* technology was first introduced.
*TC2C: It refers to “Thermal Crude to Chemicals”, a technology developed by Aramco to convert low value-added crude oil into raw materials for steam crackers in refineries
*Steam Cracker Complex: Key facilities that produce ethylene, a raw material for petrochemical products
Hyundai E&C is the project lead and will work with Hyundai ENG, Lotte E&C, and DL E&C on the construction. The project, which fully began construction through a groundbreaking ceremony on February 9 following a signing ceremony between the project owner and the participating consortium companies on February 22, is scheduled for completion in 2026.
The construction will be divided into three packages: Hyundai E&C will carry out Package 1 with Hyundai ENG, DL E&C to build steam cracker and TC2C facilities. Package 2 for installing HDPE (high-density polyethylene), LLDPE (linear low-density polyethylene) production facilities and automated warehouses will be led by Hyundai ENG and Lotte E&C, and Package 3 for tank construction will be in charge of Lotte E&C.
Hyundai E&C, which formed one team with South Korea's leading builders to successfully carry out the project, plans to make all-out efforts to create maximum synergy between K-construction technology and business expertise by jointly undertaking projects on TC2C applying Aramco’s exclusive technology and construction of the world's largest steam cracker.
Stream cracker, a key facility of this project, produces basic oil content such as ethylene and propylene by utilizing various raw materials such as naphtha and by-product gas generated during the crude oil refining process. The basic oil content to be produced after completion of construction will be 1.8 million tons of ethylene and 750,000 tons of propylene per year, which then will be used to produce 1.2 million tons of HDPE and LLDPE petrochemical products per year. As a result, S-Oil will significantly increase its share of the petrochemical business from 12% to 25%.
Meanwhile, Hyundai E&C was the first South Korean total construction firm to obtain international standard certification “ISO·TS 29001” for quality management system in the oil and natural gas sector, in 2019. Moreover, starting with the construction of the Yanbu Natural Liquefaction Plant offshore anchorage in 1979, Hyundai E&C has successfully carried out a number of oil and gas plant projects ordered by Aramco including Karan gas treatment facility and Marjan oil refining facility, which resulted in long years of trust between both entities.
Hyundai ENG has also won a 2 trillion won Jafurah gas treatment facility project ordered by Aramco along with Hyundai E&C in 2021, and is successfully carrying out the project as a lead. In 2019, it was the only South Korean builder to stand out in the European petrochemical plant market, winning the EPC project on “Police PDH/PP Plant in Poland” worth 1 billion euros in 2019 and ever since has won associated orders in “FEED-EPC” projects based on its experience in basic design (FEED) projects.
A Hyundai E&C official said, "The Shaheen Project, largest-ever in the South Korean petrochemical industry, is the result of recognition of our global excellence in technology and outstanding design, procurement, and construction (EPC) capabilities in the petrochemical and gas plants," adding that, “Successful implementation of the Shaheen Project will contribute to further consolidating our position in large-scale petrochemical plant sector, with upcoming new orders in the future.