South Korean refiner GS Caltex is to start commercial operations of a new 60,000 b/d vacuum residue hydrocracker in September, allowing it to convert extra heavy fuel oil into transport fuels at its 750,000 b/d Yeochon refinery.
GS Caltex is about to start trialling the hydrocracker after spending 2.6 trillion won ($2.1bn) on the project, which started construction in October 2008.
The addition will lift Yeochon's heavy oil upgrading capacity to 215,000 b/d or nearly 30pc of its total processing capacity.
Fellow South Korean refiner SK Energy has a similar W1.5 trillion project at its 275,000 b/d Inchon refinery, adding a 40,000 b/d hydrocracker and a 70,000 b/d vacuum distillation unit that are scheduled to start operations by 2011.
Both projects are for the export market, in keeping with the country's aim of developing a role as an export refiner and northeast Asia's oil hub.
GS Caltex is about to start trialling the hydrocracker after spending 2.6 trillion won ($2.1bn) on the project, which started construction in October 2008.
The addition will lift Yeochon's heavy oil upgrading capacity to 215,000 b/d or nearly 30pc of its total processing capacity.
Fellow South Korean refiner SK Energy has a similar W1.5 trillion project at its 275,000 b/d Inchon refinery, adding a 40,000 b/d hydrocracker and a 70,000 b/d vacuum distillation unit that are scheduled to start operations by 2011.
Both projects are for the export market, in keeping with the country's aim of developing a role as an export refiner and northeast Asia's oil hub.
