Onsan Refinery Expansion Project
 
Future Growth Engine,Onsan Refinery Project
 
  • Strengthening the foundation for sustainable growth
S-OIL has maintained Global Competitiveness in the oil refining and lube sectors through proactive investments in high-value-added facilities. We completed the Onsan Refinery Expansion Project, which we have pursued to secure high competitiveness and profitability in the petrochemical sector and began the operation in April 2011. The project completed through three years of planning, design, and construction, will lay a strong foundation for S-OIL’s sustainable growth.
 
Under the project, we have invested KRW 1.3 trillion in building No.2 Aromatic Complex on the 184,500㎡ of land. The complex is capable of producing 900,000 tonnes/year of paraxylene(PX) and 300,000 tonnes/year of benzene. We held the groundbreaking ceremony in June 2009, and began the operation of the complex two months earlier than scheduled after 22 months of construction. S-OIL could safely complete the construction of the advanced facilities in the shortest period with the minimum costs by applying its state-of-the-art technologies based on its accumulated process technologies and experience in operating existing petrochemical production facilities.
  • The Worlds largest PX capacity for a single capacity
The Onsan Refinery Expansion Project consists of No.2 Xylene Center that produces paraxylene, the base material of synthetic fiber and Aromizing Unit that can reform naphtha recovered in the crude distillation process to produce BTX(Benzene, Toluene, Xylene), base materials for petrochemical products. In addition, we expanded our crude distillation capacity from the current 580,000 to 669,000 barrels per day by introducing the condensate fractionation unit (CFU) to attain additional amounts of naphtha.
 
Through the completion of these facilities, S-OIL now has the PX production facility with the annual capacity of 1.6 million tonnes and the benzene production facility with the annual capacity of 600,000 tonnes, twice its past production capacity in petrochemicals.
  • Exporting more than half of production
S-OIL exports more than 50% of its petrochemical production each year. The completion of its Onsan Refinery Expansion Project is expected to make S-OIL the most influent PX supplier in the Asia-Pacific region and give it the highest competitiveness by utilizing its geographical benefit of being close to the center of increasing global demand.
 
Included in DJSI World
 
The first Asia Pacific refiner listed in DJSI World for three consecutive years

In 2012, S-OIL was selected as a member of DJSI (Dow Jones Sustainability Indexes) World. It is the only and the most honorable case among Asia Pacific refiners that the Company has been included in the DJSI World for three consecutive years. The company was also evaluated as Korea’s No.1 company in the oil refining sector.

The DJSI is the index for which Dow Jones, an American financial information company and SAM, a Swiss investment rating agency, assess the overall financial, economic, environmental, and social performance of the world’s top 2,500 companies in terms of market capitalization. Then they select only top 10 companies in terms of sustainable management to make the index. A company that is listed in the index is evaluated as competitivein the long term by its entry itself.

In the in-dept assessment with 118 questions in the sectors of economy (financial performance, crisis management, ethical management, brand management, etc.), environment (environment reporting, environment management system), and society (human resources management, labor indicators, corporate citizenship, etc.), S-OIL was evaluated as having established and operated the management system befitting a global leading company. In particular, S-OIL’s efforts for and achievements in sustainable management by taking an advanced governance and transparent management as core principles were recognized.

 


S-OIL has led the industry with high competitiveness and profitability. S-OIL aims to be able to maintain its competitive edge by improving the current facilities and system. The company has been enhancing the profitability of production facilities through the process optimization and stable facility operation to take a rapid and flexible response to changes in management environment.
 
S-OIL plans to increase the production of eco-friendly high-value-added products, and make its corporate governance more transparent.
On the environment front, we are making various efforts to curb greenhouse gas emissions and save energy. This is to contribute to Korea’s new development paradigm “Low Carbon Green Growth,” and to actively respond to strengthening environmental regulations.
 
On the Corporate Social Responsibility(CSR) front, we are becoming “Warm-hearted company” with “love.” Through our enterprise-wide CSR program “Sunshine Sharing campaign,” all our employees are working together to protect the vulnerable in society and make a healthier and wiser society. In addition, we are establishing an effective human resources structure and constantly supporting the systematic career development and leadership training so that our employees can develop their capabilities and innovate themselves.
 
S-OIL is advancing to become a global super energy company by exercising active leadership that can provide new values, going beyond taking required duties and responsibility as a corporation.
 
Most eco-friendly automobile fuel
 
Leading quality competition vand producing eco-friendly products
 
1S-OIL has been a leader in enhancing the quality of Korean oil products while it has worked to improve the environmental quality of automobile fuel from its early days. Our efforts have resulted in developing high-octane gasoline in the 1990s and “clean kerosene,” which made us the first Korean refiner to earn the environment mark. We have secured high competitiveness in the domestic and foreign markets by producing both gasoline and diesel products that meet the standard of advanced nations of less than 10ppm of sulfur content.
 
  • Alkylation Process to produce clean gasoline
 
We largely enhanced the environmental quality of gasoline by completing the Alkylation process in October 2009. The facility, in which we invested around KRW 150 billion, can produce 9,200 barrels of Alkylate per day. Alkylate is a high-octane gasoline mixture with a low steam pressure.
 
As it is free of such harmful substances as sulfur, olefin, aromatics, and benzene, it is acclaimed as an eco-friendly gasoline.
Alkylate itself can be used as high-quality gasoline, and it can replace MTBE in increasing the octane number and quality of gasoline.
 
The production of the environment-friendly gasoline has allowed S-OIL to actively respond to constantly tightening petroleum product-related environmental regulations at home and abroad. We used to purchase all of the Alkylate we needed. However, now we are not only supplying Alkylate on our own but selling it, improving our profits by some KRW 100 billion a year.
  • The best environmental qualit of automobile fuel 
 
Through continuous investments and efforts to supply eco-friendly high quality products, S-OIL’s gasoline and diesel products have received ★5 grade, meaning the best environmental quality in the world, in the environmental quality assessment by Ministry of Environment.
 
Especially for gasoline, S-OIL has become the only Korean oil refiner to gain ★5 grade consecutively since the first half of 2009.
 
We also have maintained the world highest grade for diesel since 2006 when the assessment began.
 
S-OIL will continue to pursue developing low pollution oil products.
 
Acquisition of the Carbon Trust Standard (CTS) for the first time in Korea
 
S-Oil recieved high recognition for excellence in its carbon management system and GHG emission reduction performance
 
S-OIL acquired the Carbon Trust Standard (CTS), the global certification on carbon management,from Carbon Trust, the global certification agency, for the first time in Korea in 2012.

CTS is a system for evaluating corporations’ green management strategies, GHG and energy reduction performance, and GHG reduction activities and this is granted by Carbon Tr-ust, a global certification agency in the GHG field as established by the UK government in 2001.Corporations should establish a corporate-wide GHS management system, which includes a GHG measurement system, GHS management organization and reduction planning, and they should verify their GHS emission reductions objectively in order to be certifiedby Carbon Trust. As S-OIL fulfilled all of these conditions, it received certification. This certification will be renewed every two years through a strict verification process.

With the receipt of CTS, S-OIL received global recognition for excellence in its carbon management system and GHG emission reduction performance, and is now standing along with advanced global corporations such as Shell, ConocoPhillips, BMW, and Microsoft that were already certified. In particular, under the circumstances that global demand for GHG reduction is growing, such achievement is a quite meaningful outcome.

In the long term, the receipt of CTS is expected to be helpful in a corporation’s energy efficiency, cost saving, customer recognition, response to stakeholders, etc. As the paradigm of corporate management is shifting to be eco-friendly, “green management” has become one of the most hot topics in global management. At this point in time, S-OIL, which had made proactive efforts to achieve eco-friendly production and energy conservation, received CTS, and this will serve as an opportunity to more actively practice carbon management. By so doing, S-OIL plans to move forward and stand tall as a global leading corporation that provides new values on environmental and sustainability management to various stakeholders.