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The largest single PX plant in the world starts up
May '11
S-OIL began full-scale operation of a large petrochemical plant that produces para-xylene (PX) and other petrochemical products in Onsan. As part of its effort to expand future growth engines, S-OIL invested more than 1.3 trillion won in the No.2 Aromatic complex construction project. That would more than double the refinery's petrochemical production capacity. After completing the construction of No. 2 Aromatic complex this March, we conducted a test run of the complex for about two months and have recently begun to operate the complex on a full scale, S-OIL said on May 30.

The operation of the No.2 Aromatic complex enables S-OIL to produce 1,600,000 tons of PX a year, the largest among single plants in the world, and solidify its position as one of the most competitive suppliers of petrochemical products. The company expects the operation will contribute to increase its annual sales by around 3.5 trillion won. It is also forecast to raise S-OIL's exports by about $3.2 billion annually.

S-OIL completes Onsan Refinery Expansion Project:

- S-OIL expands its future growth engines through the completion of Onsan refinery expansion projects with a total investment of 1.3 trillion won.
- It is capable of producing 1,600,000 tons of para-xylene, 600,000 tons of benzene, and other various petrochemical products.
- S-OIL secures global competitiveness in the petrochemical sector as well as in the oil refining and lube oil sectors.

The No.2 Aromatic complex is our new growth engine and future driving force that will help us diversify our business areas and establish a solid presence in the areas, said S-OIL CEO Subaey. We will be able to gain a firm foothold in the petrochemical market as well as in the oil refining and lube oil markets where we have already secured global competitiveness.

The S-OIL No.2 Aromatic complex produces PX and benzene-basic feedstocks for synthetic fibers and petrochemical products-from naphtha that is produced in the crude oil refining process. The complex is capable of producing 900,000 tons of PX and 300,000 tons of benzene a year. So, with the operation of the complex, S-OIL's annual PX and benzene production capacities more than double to 1,600,000 tons and 600,000 tons, respectively, from the previous 700,000 tons and 300,000 tons.

In order to additionally secure naphtha, a feedstock for petrochemical production, S-OIL also built a condensate fractionation unit (CFU) and thereby raised its crude oil refining capacity from the current 580,000 barrels per day to 669,000 barrels.

We export about 60% of our total petrochemical production each year, said an official at S-OIL. With the start of operation of No.2 Aromatic complex, we will not only become the most influential PX supplier in the Asia-Pacific region, but we will also emerge as a petrochemical market leader by taking advantage of our geographical proximity to the center of global demandgrowth.

S-OIL Corporation

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