▲ President Yoon Suk Yeol delivers congratulatory remarks at the groundbreaking ceremony for an S-Oil petrochemical plant in the southeastern city of Ulsan on March 9, 2023. (Pool photo) (Yonhap)

Yoon-petrochemical plant

Yoon attends groundbreaking ceremony for S-Oil petrochemical plant

By Lee Haye-ah

SEOUL, March 9 (Yonhap) -- President Yoon Suk Yeol attended the groundbreaking ceremony for a 9.3 trillion-won (US$7 billion) petrochemical plant in the southeastern city of Ulsan on Thursday, hailing the project as a symbol of the friendship and trust between South Korea and Saudi Arabia, his office said.

The "Shaheen project," named after the Arabic word for falcon, Saudi Arabia's national bird, aims to construct a large-scale petrochemical production facility at S-Oil's Onsan industrial complex in Ulsan, 307 kilometers southeast of Seoul.

S-Oil is South Korea's No. 3 oil refiner in which Saudi Arabia's state-run oil giant, Saudi Aramco, holds the largest stake.

Yoon marked the start of the project, which was finalized during his meeting with Saudi Crown Prince Mohammed bin Salman in Seoul last November, saying it is a key achievement of economic diplomacy between South Korea and Saudi Arabia.

He also promised to drastically improve domestic regulations that do not meet global standards so as to help foreign investment firms freely conduct business in South Korea, his office said.

Following the project's completion slated for 2026, the plant will increase the rate of naphtha production by around three times, marking the first commercialization of a new process that maximizes the production of industrial material, according to the presidential office.

The facility will also be the largest single petrochemical production plant in the world boasting the highest level of energy efficiency, and help the stable supply of industrial material as well as the production and export of high value-added petrochemical products, it said.

In total, the facility is expected to increase South Korea's export value by around $900 million.

Ahead of the ceremony, Yoon met with Amin Nasser, president and CEO of Aramco, saying the Shaheen project symbolizes the smooth path the two countries are following in producing actual results and promising the South Korean government's cooperation for the project's success.

Yoon also said the government will increase incentives for foreign investment and help with various licensing requirements, adding he hopes the success of the Shaheen project will lead to additional cooperation in energy and other fields.

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