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S.Korea's SK Innovation to build new desulfurization unit by 2020

SEOUL (Reuters) — The owner of top South Korean oil refiner SK Energy said on Wednesday that it would spend about $897.8 MM to build a new desulfurization unit by 2020, part of a push to churn out cleaner shipping fuels.

Photo courtesy of SK Energy.
Photo courtesy of SK Energy.

Under the plan, a 40,000-bpd Vacuum Residue Desulfurization (VRDS) will be added to an 840,000-bpd refinery in the southeastern city of Ulsan, South Korea's SK Innovation said in a stock exchange filing.

The move comes as tougher international regulations on sulfur emissions are due to take effect from 2020, the company said in a separate statement.

The firm added that the unit would also help in producing high value-added products including diesel and naphtha by processing cheaper residual fuel oil.

SK Energy has a total refining capacity of 1.115 MMbpd—a combined 840,000 bpd at five crude distillation units (CDUs) in Ulsan and 275,000 bpd at two CDUs in the western city of Incheon.

Reporting by Jane Chung; Editing by Joseph Radford

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