Aramco to Pump $7 Bn to Develop World's Largest Petrochemical Crackers in S. Korea

Aramco's refinery-integrated petrochemical steam crackers in Saudi Arabia (AP)
Aramco's refinery-integrated petrochemical steam crackers in Saudi Arabia (AP)
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Aramco to Pump $7 Bn to Develop World's Largest Petrochemical Crackers in S. Korea

Aramco's refinery-integrated petrochemical steam crackers in Saudi Arabia (AP)
Aramco's refinery-integrated petrochemical steam crackers in Saudi Arabia (AP)

Saudi Aramco announced it was planning to invest $7 billion in South Korea to develop one of the world's largest refinery-integrated petrochemical steam crackers, which will be established in Ulsan city.

The "Shaheen" project is Aramco's most significant investment in South Korea to develop one of the largest steam crackers to maximize the crude to the chemicals value chain.

Aramco is the majority shareholder of S-OIL, holding more than 63 percent of its shares through its Aramco Overseas Company BV subsidiary. The project is expected to start in 2023 and be completed by 2026.

The new plant is planned to have the capacity to produce up to 3.2 million tons of petrochemicals annually and include a facility to produce high-value polymers.

The steam cracker is expected to process by-products from crude processing, including naphtha and off-gas, to produce ethylene, a building block petrochemical used to make thousands of everyday items.

The plant is also expected to produce propylene, butadiene, and other essential chemicals.

Aramco stated that upon project completion, S-OIL chemical yield based on volume could almost double to 25 percent, demonstrating this cutting-edge technology's impact.

Aramco CEO Amin Nasser announced that the global petrochemical landscape is "rapidly evolving with demand growth anticipated to accelerate, driven in part by rising consumption from Asia's emerging economies."

According to Nasser, Shaheen is well-positioned to meet the rising demand for the materials that will be required across the region's key industries.



Geopolitical Strife Could Cost Global Economy $14.5 Trln Over 5 Years

09 October 2024, Palestinian Territories, Gaza City: A general view of buildings damaged by Israeli strikes. Photo: Mahmoud Issa/Quds Net News via ZUMA Press/dpa
09 October 2024, Palestinian Territories, Gaza City: A general view of buildings damaged by Israeli strikes. Photo: Mahmoud Issa/Quds Net News via ZUMA Press/dpa
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Geopolitical Strife Could Cost Global Economy $14.5 Trln Over 5 Years

09 October 2024, Palestinian Territories, Gaza City: A general view of buildings damaged by Israeli strikes. Photo: Mahmoud Issa/Quds Net News via ZUMA Press/dpa
09 October 2024, Palestinian Territories, Gaza City: A general view of buildings damaged by Israeli strikes. Photo: Mahmoud Issa/Quds Net News via ZUMA Press/dpa

The global economy could face losses of $14.5 trillion over a five-year period from a hypothetical geopolitical conflict which hits supply chains, insurance market Lloyd's of London said on Wednesday.

The economic impact would result from severe damage to infrastructure in the conflict region and the potential for compromised shipping lanes, Lloyd's said in a statement.

Wars in Ukraine and Gaza have already disturbed shipping routes in the Black Sea and Red Sea.

"With more than 80% of the world's imports and exports – around 11 billion tons of goods – at sea at any given time, the closure of major trade routes due to a geopolitical conflict is one of the greatest threats to the resources needed for a resilient economy," Lloyd's said.

The possibility of such a geopolitical conflict was a systemic - or low likelihood but high impact - risk, Lloyd's said.

Lloyd's said it has also researched other potential systemic risks in partnership with the Cambridge Centre for Risk Studies, including cyber attacks and extreme weather events.