DL E&C, South Korea announced in a statement that it will participate in the Shaheen Project, the largest domestic petrochemical project ever. The company said on March 10 that it will participate in the connection project of TC2C (thermal crude to chemical) in sector 1 of the Shaheen Project and existing plant.
DL E&C will participate in the project by taking over part of the package 1 construction from Hyundai E&C consortium. Package 1 is worth approximately KRW 5.4 trillion, and DL E&C’s stake is 26% or KRW 1.4 trillion. The construction period is 42 months, and the project is scheduled to be completed in 2026.
The project promoted by S OIL is the largest petrochemical project in Korea with KRW 9.2 trillion invested. Hyundai E&C, Hyundai Engineering, and Lotte E&C as well as DL E&C will participate in the project, which seeks to increase petrochemical products’ output ratio from 12% to 25% by building oil refining and petrochemical facilities in the Ulsan Onsan National Industrial Complex.
DL E&C will perform TC2C construction, reckoned as a key process of the Shaheen Project. The technology was developed by Saudi’s state corporation Aramco and the US Lummus Technology and will be commercialized through the Shaheen Project for the first time in the world. TC2C is a technology for converting crude oil into petrochemical raw material naphtha. Specifically, the low value-added fuel oil produced in the existing oil refining process is decomposed, and then the petrochemical’s raw material, naphtha, is produced. The technology is expected to enhance the naphtha production yield more than fivefold compared to the existing oil refining process.
This construction is the first attempt in the world, so experience in various oil refining/petrochemical plant fields and advanced design technological capabilities are required. Various high temperature and pressure facilities need to be set up, and experience in carrying out the relevant project is essential. DL E&C will participate in the project based on its acknowledged experience in performing Saudi Arabia’s Yanbu oil refinery and Oman’s Sohar refinery improvement projects.
With DL E&C successfully performing the KRW 5 trillion Ulsan stage 1 Petrochemical Project ordered by S OIL ahead of the Shaheen Project, its technological and project performing capabilities have been recognized. By leading the Residue Upgrading Complex (RUC) and olefin downstream facilities constructions since 2015, DL E&C successfully carried out commercial operations in 2018. The company adopted innovative design and construction technologies including the modular production mode for major facilities construction and received a high rating from the client, S OIL.
“We will prove our technological and project performing capabilities built up in many parts of the world through Korea’s largest petrochemical project. We will do our very best to commercialize the TC2C technology for the first time in the world by concentrating our EPC performing competence,” an official from DL E&C said.
