SEOUL: South Korea’s S-Oil has awarded Daewoo Engineering & Construction and Daelim Industrial a 3.5tn won (US$3.2bn) contract to build an upgrading plant in the city of Ulsan.
The plant will be made up of a residue upgrading complex and an olefin conversion system, and will be based at the site of an existing S-Oil refinery.
Its capacity has not been revealed, but it is designed to upgrade bunker oil and other heavy fuel oils into gasoline, propylene and other high-value products. It is scheduled to start up in the first half of 2018.
Daelim and Daewoo formed a 55/45 consortium in order to secure the contract, which represents South Korea’s largest ever order for a single plant according to the Yonhap news agency. S-Oil is Korea’s third-largest refiner and is majority owned by Saudi Aramco.
