S-Oil activity suspended as Korean authorities investigate on the cause of deadly explosion

[Photo by Yonhap]

South Korean government and law enforcement authorities are investigating a deadly explosion and fire at an S-Oil refinery plant in Ulsan last Thursday and suspended alkylate extraction process at the site, suspecting it to be related to the accident.

One worker died and nine others were injured in the fire triggered by an explosion inside S-Oil¡¯s refinery at Onsan industrial park in Ulsan, some 400 kilometers southeast of Seoul. The blast took place at around 8:50 pm on Thursday. Firefighters said the ensuing fire is still active but is not spreading.

S-Oil is the third-largest oil refiner in Korea, and its major shareholder is Aramco Overseas Company under Saudi Aramco.

S-Oil CEO Hussain A Al-Qahtani in a press conference at Ulsan factory site on Friday apologized for the accident and vowed maximum cooperation to the authorities.

[Photo by Yonhap]

The refining complex would be suspended until investigation and repair, he said, while promising to minimize disruption in domestic supply.

The burnt Ulsan plant produces alkylate, a raw material for clean gasoline. S-Oil started the construction of the facility on a site of 6,000 square meters in September 2007 at a total investment of 150 billion won ($118 million). The plant was up and running in August 2009 with a daily capacity of 9,200 barrels of alkylate.

Alkylate can be used as premium gasoline because it has a low medium atmospheric pressure and a high octane number, according to the company. S-Oil has promoted alkylate is an eco-friendly oil fraction as it does not contain harmful substances such as sulfur, olefins, aromatics and benzene.

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