South Korea's S-OIL Makes Final Investment Decision on Xylene Isomerization Unit, Targeting Q2 2027 Start-Up

en.Wedoany.com Reported - On September 10, France's Axens announced that South Korea's S-OIL has made a final investment decision (FID) to add a liquid-phase xylene isomerization (LPI) unit at its Aromatics Complex No. 1 in Ulsan. The unit will adopt Axens' liquid-phase xylene isomerization technology and is scheduled to commence operation in the second quarter of 2027. The two parties had already signed a technology licensing agreement in late 2024, and this FID means the project has officially moved from the technology licensing and preliminary design stage into the implementation stage.

Under the agreement, Axens will provide S-OIL with LPI technology licensing, a process design package, and technical services during project execution and start-up. The new unit will be installed within S-OIL Aromatics Complex #1, primarily to optimize the xylene isomerization step within the existing aromatics production system, improve para-xylene recycling efficiency, and reduce energy consumption and emissions across the entire aromatics complex.

Liquid-phase xylene isomerization technology is used to re-equilibrate isomers in mixed xylenes, improving the utilization of target components in the para-xylene production chain. According to Axens, this technology can reduce energy consumption in the xylene loop and enhance the overall economics of aromatics units by optimizing the operating combination between liquid-phase and gas-phase isomerization units. The technology is owned by ExxonMobil and licensed by Axens, and has been commercially applied in multiple aromatics complexes.

The new unit primarily serves S-OIL's existing para-xylene business. Once operational, it will further improve the operating efficiency of Aromatics Complex No. 1 and provide more efficient feedstock recycling capacity for para-xylene production. Axens will continue to participate in engineering implementation and start-up support. Currently available public information has not disclosed the investment amount, design processing capacity, or EPC contractor for the new unit.

S-OIL has continued to expand its investment in South Korea's petrochemical business in recent years. The company is advancing the Shaheen project, with a total investment of 9.258 trillion won, its largest petrochemical investment in recent years, which plans to expand its capacity to supply basic chemical products through new steam crackers and downstream units. The addition of the LPI unit at Aromatics Complex No. 1 represents a process upgrade to the existing aromatics production system.