S-Oil lets contract for Onsan refining complex

S-Oil Corp., Seoul, has let a contract to a subsidiary of Yokogawa Electric Corp., Tokyo, to provide control systems for a high-severity residue fluid catalytic cracker (HS-RFCC) and auxiliary installations to be built as part of a residue upgrading and capacity expansion project under way at the 669,000-b/d Onsan refinery complex in Ulsan, South Korea.

Yokogawa Electric Korea Co. Ltd. will deliver its proprietary CENTUM VP integrated production control systems, ProSafe-RS safety instrumented systems, Plant Resource Manager (PRM) field device-management software packages, and other unidentified products for the HS-RFCC plant, Yokogawa said.

Alongside its delivery of associated software and equipment for the project, Yokogawa also will provide engineering, installation, and commissioning of the systems, as well as training for plant operators, the service company said.

A value of the contract was not disclosed.

This latest contract follows S-Oil’s previous contract award to Technip SA, Paris, for engineering, procurement, and construction on the 76,000-b/d HS-RFCC, one of many projects under the South Korean operator’s overall program to modernize and expand its integrated refining and petrochemical operations at Ulsan (OGJ Online, Apr. 22, 2016).

The program, which includes construction of a residue upgrading complex (RUC) and olefin downstream complex (ODC), is designed to improve profitability as well as secure long-term competitiveness of the Onsan complex by enabling it to increase conversion of low-cost heavier hydrocarbons into high-value olefins and fuels (OGJ Online, July 16, 2015).

Scheduled for startup during first-half 2018, the RUC will add a 63,000-b/d residue hydrodesulfurization (Hyvahl) unit as well as the 76,000-b/d HS-FCC to produce gasoline (21,000 b/d), alkylate (14,000 b/d), and methyl tertiary butyl ether (370,000 tonnes/year).

The ODC project, also due for commissioning during first-half 2018, will add a 405,000-tpy polypropylene (PP) plant and 300,000-tpy propylene oxide (PO) plant based on PP and PO technologies licensed by Sumitomo Chemical Co. Ltd., Tokyo, according to a Nov. 30, 2015, release from S-Oil.

Ongoing modernization program

The South Korean refiner also continues to progress with implementation of its separate S-OIL Upgrading Program of Existing Refinery (SUPER) project, which involves a series of revamps at existing processing units of the integrated complex.

Approved in 2014, SUPER currently consists of three phases, the first of which S-Oil completed during 2015, the company said.

Alongside upgrades to an existing hydrocracking plant that increased production volumes of diesel, kerosine, and lube base oils, Phase 1 of SUPER also included completion of the first-stage revamp of Onsan’s aromatic complex, which resulted in higher output of paraxylene, S-Oil said.

By yearend, S-Oil said it will complete Phase 2 of SUPER, including revamps of existing lube base oil, RFCC, and ultralow-sulfur diesel production complexes.

Due to be completed in 2017, Phase 3 of SUPER will include a second-stage revamp of the aromatic complex.

Following completion of SUPER’s first three phases, the company said it plans to continue to develop, plan, and implement projects for future phases of the upgrading and modernization program to ensure ongoing profitability of Onsan’s existing production units.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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