Hyundai E&C and Hyundai Engineering are participating in one of the biggest-ever integrated petrochemical projects, known as “Shaheen Project.”
Hyundai E&C and Hyundai Engineering held a ceremony to strike a deal on the implementation of the Shaheen Project, awarded by S-OIL, on Nov. 17.
Among about 300 government and business officials of both countries on hand at the signing event held at the Korea Chamber of Commerce and Industry were Minister of Trade, Industry and Energy Lee Chang-yang, Al-QahtaniKhalid al-Falih, minister of the Saudi Ministry of Investment (MISA), and Saudi Minister of Economy and Planning Faisal bin Fadhil Alibrahim.
The signing of the contract was between the order and consortium participants with Hyundai E&C President Yoon Young-joon, Hyundai Engineering President Hong Hyun-sung, S-OIL CEO Hussain A. and Lotte E&C President Ha Suk-joo in attendance.
The project will be implemented by a consortium, led by Hyundai E&C, in cooperation with Hyundai Engineering and Lotte E&C.
A groundbreaking ceremony will be held early next year and it will be dedicated for 2026. S-OIL’s Shaheen Project calls for building production facilities of petrochemicals, including ethylene and polyethylene in the Ulsan area with the biggest-ever scale of the Korean petrochemical industry.
Hyundai E&C and Hyundai Engineering are participating in the construction of the “steam cracker,” a core facility for producing ethylene, a raw material of petrochemical products, and an “olefin” down-stream, a facility for producing value-added products, such as polyethylene using ethylene.
In particular, the project will employ the TC2C (Thermal Crude to Chemical) technology, developed and commercialized by Aramco, for the first time.
Aramco has the biggest stake in S-OIL. The TC2C technology, designed to convert crude oil into petrochemical feedstock, is characterized by maximizing the naphtha yield rate.
When the facilities are dedicated, they will be capable of producing petrochemical products, including 1.8 million tons of ethylene and 750,000 tons of ethylene annually.
With the completion of the project, S-OIL aims to raise the portion of petrochemical products from the current 12 percent to 25 percent.
The Hyundai consortium, participating in the Shaheen Project, is evaluated to have been recognized for optimized design, procurement and construction (EPC) capabilities in the petrochemical and gas plant sectors.
In 2019, Hyundai E&C became the first Korean integrated contractor to have obtained the quality management system “ISO TS 29001” of the petroleum and natural gas industry sectors.
The contractor has built trust over the years by successfully carrying out multiple petroleum and gas plant projects, awarded by Saudi Aramco.
Based on the track record, In July, Hyundai E&C was finally selected as a partner (in the construction EPC sector) of Saudi Aramco’s mid- and long-term projects - obtaining an exclusive status, such as private contracts and bidding incentives toward new projects, to be awarded by Aramco in the future.
Hyundai Engineering has also been successfully implanting the 2 trillion won Jafurah petrochemical facility project, awarded by Aramco last year, in cooperation with Hyundai E&C.
In 2019, Hyundai Engineering was on a roll in the European petrochemical plant market by winning Poland’s “Polimery Police” PDH/PP project worth 1 billion euros.
Last year, the company landed Poland’s PKN olefins expansion project (EPC) and Indonesia’s EPC “LINE Project.”
The company has been hitting the gas to win orders linking “FEED-EPC,” based on the technology competitiveness of the Front & End Engineering & Design (FEED) sector and has an experienced track record.
Meanwhile, Saudi Aramco, the world’s biggest energy company, which is implementing growth projects for Saudi Arabia, is expected to place orders for about 10 projects similar to the Shaheen Project.
Hyundai E&C, starting with Saudi Arabia, is expected to build its outstanding position the Middle Eastern market, and further expand its global presence.