Ready for Improved Market Condition
SK Innovation Co. announced on December 12 that its main production bases – Ulsan Complex (Ulsan CLX) and SK incheon petrochem Co. – successfully completed the largest routine maintenance in history and the whole process will return to normal operation.
As all the routine maintenance this year finished, SK Innovation’s petroleum and chemical facilities will be fully operated. As the company also revamped the process at some facilities, its production at petroleum and chemical facilities is expected to increase as well. Accordingly, SK Innovation has secured capabilities to refine 1.12 million barrels of crude oil a day and produce 2.8 million tons of pxylene a year, the largest amounts since its founding.
Industry sources expect that the refining market will show strong refining margins and improving market conditions, such as the oil price surges of more than US$50 (58,475 won) and the balance of demand and supply of petrochemical products, as the Organization of the Petroleum Exporting Countries (OPEC) has agreed to cut production for the first time in eight years, getting rid of the largest uncertainty in the refining industry.
An official from SK Innovation said, “We have made efforts to boost our original competitiveness through the large-scale routine maintenance for existing facilities this year. We will focus on maximizing the efficiency by optimizing operation next year.”