Hyundai Construction and Hyundai ENG Participate in Shahin Project... Awarded Largest Domestic Petrochemical Facility Construction Contract

S-Oil Participates in 'Shahin Project'
Signing Ceremony Held at Korea-Saudi Investment Forum

Hyundai Construction CEO Yoon Young-jun (second from right), Hyundai Engineering CEO Hong Hyun-sung (far right), S-Oil CEO Hussein Al Qatani (second from left), and Lotte Construction CEO Ha Seok-ju (far right) are seen signing the contract and posing for a commemorative photo at the S-Oil Shahin Project contract signing ceremony. (Photo by Hyundai Construction)

[Asia Economy Reporter Kim Hyemin] Hyundai Construction and Hyundai Engineering are participating in the largest domestic petrochemical project in history, the 'Shahin Project.'

Hyundai Construction and Hyundai Engineering announced on the 17th that they signed a contract to carry out petrochemical facility construction ordered by S-Oil. The signing ceremony, held during the Korea-Saudi Investment Forum, was attended by about 300 government and business officials from both countries, including Lee Chang-yang, Minister of Trade, Industry and Energy, Khalid Al-Falih, Saudi Minister of Investment, and Faisal Al-Ibrahim, Saudi Minister of Economic Planning.

The contract signing took place through a signing ceremony between the ordering company and the consortium participating companies, attended by Yoon Young-joon, CEO of Hyundai Construction, Hong Hyun-sung, CEO of Hyundai Engineering, Hussein Al-Qatani, CEO of S-Oil, and Ha Seok-ju, CEO of Lotte Construction.

S-Oil's Shahin Project is a business to establish petrochemical product production facilities, including ethylene and polyethylene (PE), in the Ulsan area. Hyundai Construction is leading the consortium with Hyundai Engineering and Lotte Construction. Construction is scheduled to start early next year and be completed in 2026.

Hyundai Construction and Hyundai Engineering will participate in building the core facility 'steam cracker' that produces ethylene, the raw material for petrochemical products, and the 'olefin downstream' facility that produces high value-added petrochemical products such as polyethylene using ethylene.

In particular, this project will be the first to introduce the TC2C (Thermal Crude to Chemical) technology developed and first commercialized by Saudi state-owned company Aramco, the largest shareholder of S-Oil. This technology converts crude oil into petrochemical materials and is characterized by maximizing the production yield of naphtha, a petrochemical raw material.

Once the facilities are completed, they will produce 1.8 million tons of ethylene and 750,000 tons of propylene annually, along with other petrochemical products. Through this, S-Oil aims to increase the production ratio of petrochemical products from the current 12% to 25%.

Hyundai Construction has built a trust relationship by carrying out numerous oil and gas plant projects ordered by Saudi Aramco. In July this year, it was finally selected as the construction EPC partner for Aramco's mid- to long-term growth projects, securing an exclusive position with incentives such as sole contracts and bidding for upcoming new projects. Hyundai Engineering also won the 2 trillion won Jafurah petrochemical facility project ordered by Aramco last year together with Hyundai Construction and is currently executing the project as the lead company.

A Hyundai consortium official said, "This project, the largest in the domestic petrochemical industry, is the result of the two companies' technological capabilities, business competencies, and long-standing trust with the ordering party," adding, "We expect to establish a solid foothold in the Middle East by securing stable work in large-scale petrochemical plant projects expected to be ordered in Saudi Arabia in the mid to long term."

This content was produced with the assistance of AI translation services.