In Ulsan, the cradle of Korea’s petrochemical industry, Hyundai E&C is unveiling the majestic form of the Shaheen Project, celebrated as the beating heart of a new energy. With a total project cost of 9.2 trillion won, the Shaheen Project (Arabic word for “hawk”) represents the largest petrochemical investment in Korea and marks a paradigm shift in the global plant industry and showcases innovation that pushes the boundaries of technology. Let us embark on a new chapter in Hyundai E&C’s legacy of dedication, engineering excellence, and innovation.

 Shaheen Project: Leading the Way in Energy Innovation 

Ulsan is at the forefront of South Korea’s economic growth, serving as a hub for the automotive, shipbuilding, and petrochemical industries. Among them, the Onsan National Industrial Complex stands as the core of the domestic petrochemical sector, equipped with state-of-the-art facilities and filled with dynamic energy. It is here that the Shaheen Project, the largest petrochemical complex construction project in the country, is currently underway. This mega-project aims to establish a future-proof petrochemical complex that produces ethylene and propylene - basic petrochemical feedstocks - and uses them in the manufacturing of high-value-added polymer products. Hyundai E&C is demonstrating its cutting-edge technical expertise across every phase from design to construction, of this historic project. 

 The Shaheen Project: Revolutionizing the Global Petrochemical Market 

Launched in January 2023 on a massive 880,000 ㎡ site, equivalent to over 120 soccer fields, the Shaheen Project is racing toward its target of mechanical completion by the first half of 2026. The total length of piping alone for the entire project is approximately 1,488 km, long enough to travel between Seoul and Busan twice, and the mechanical equipment weighs about 130,000 tons, equivalent to the weight of three Titanic ships. The project is largely divided into three sections - PKG-1, PKG-2, and PKG-3 - and Hyundai E&C is leading the project as the main contractor for PKG-1, the core section.

[ PKG-1 consists of the TC2C unit (a facility that directly converts crude oil into petrochemical feedstock), the Utilities & Offsites area, and the Steam Cracker (ethylene production facility) section ]

The Shaheen Project holds significant importance for the South Korean economy. Beyond a conventional plant construction project, it aims to establish the world’s largest single facility with an annual ethylene production capacity of 1.8 million tons, positioning it as a game changer expected to reshape the global petrochemical industry.

 Building the Heart: Hyundai E&C Constructs the World’s Largest Steam Cracker 

The PKG-1 section, where Hyundai E&C is serving as the lead contractor, is the core of the Shaheen Project and the heart of basic petrochemical feedstocks production. A steam cracker will be built here to produce ethylene, propylene, butadiene, benzene, and other key raw materials for the petrochemical industry by thermally cracking various feedstocks such as naphtha and LPG at high temperatures.

[ The cracking heater, a core component of the steam cracker. Hyundai E&C is fabricating the cracking heater (width: 10 m, length:40 m, height: 68 m, weight 3,200 tons) in module and installing it on site ]

The core device of this equipment, the cracking heater, consists of a total of 10 units, each measuring approximately 10 meters in width, 40 meters in length, and 68 meters in height, with a weight of 3,200 tons. Hyundai E&C manufactured the cracking heaters in modular form, thereby achieving two key objectives: shortening the on-site installation schedule and enhancing quality control. Typically, such complex equipment is assembled piece by piece at the construction site. However, Hyundai E&C took a different approach by pre-fabricating two units together as a single module. Most notably, this project marks a rare case both in Korea and globally, where the radiant section, the most critical component of the heater, was also modularized. This represents a major achievement, demonstrating Hyundai E&C’s advanced technological capabilities and construction management expertise in the precise manufacturing, safe transportation, and accurate installation of large structures.

Hyundai E&C is currently continuing the meticulous installation process after transporting the prefabricated modules to the site by sea. Upon arrival, the modules are sequentially assembled with steel structures weighing several thousand tons. At the same time, essential components such as coils, burners, tubes, and steam drums, which serve as the heart of the cracking heater are being precisely installed inside. In particular, the connection between the burners, which generate high-temperature flames, and the tubes that transfer heat is one of the most critical processes, breathing life into the entire plant facility.

Once completed, the steam cracker is expected to produce large-scale petrochemical feedstocks, including 1.8 million tons of ethylene and 770,000 tons of propylene annually, laying a solid foundation to produce high-value-added polymer products.

 The Largest Olefin Production Tower in Korea Rises at the Shaheen Project Site 

This past March marked a major milestone for the Shaheen Project. Hyundai E&C successfully installed the Propylene Fractionator, an iconic tower symbolizing olefin production, demonstrating its advanced engineering excellence. With a diameter of 8.5 m, weighing 2,370 tons and rising 118 m high, the fractionation tower is the largest heavy-lift structure ever installed in Korea’s petrochemical sector. Installing a mega-structure of this scale required thorough planning, including the use of specialized equipment and precise segment assembly. Hyundai E&C leveraged 3D scanning technology to thoroughly analyze transport routes and potential hazards, ultimately succeeding in safely delivering this massive structure via standard roadways.

[ Hyundai E&C successfully installed Korea’s largest Propylene Fractionator rising as tall as a 50-story apartment building ]

Installing such a massive tower, equivalent in height to a 50-story apartment building, was particularly daunting. Hyundai E&C applied the Tower Lifting System (TLS), a specialized method used to lift extremely heavy equipment weighing hundreds to thousands of tons at refineries, chemical plants, and power plants. The system is composed of a lower frame, middle frame, top frame, and a strand jack, which gradually raises heavy structures.

To securely anchor the segmented towers, Hyundai E&C used specially designed grommet wire hooks, and then brought in a 750-ton crawler crane to steadily lift the enormous structure. The moment this massive tower was installed in just 14 hours, the on-site team shared the joy of an achievement made possible through long-standing preparation and persistent effort over the years. 

 Integrating Hyundai E&C's Design & Build Capabilities with Disruptive Advanced Technologies 

Plant construction involves a wide range of construction types, including civil, architectural, mechanical, plumbing, steel, fixtures, electrical, instrumentation, and commissioning. This is especially true at a site like the Shaheen Project, where facilities are densely arranged within a limited space, making close collaboration at various points of contact essential.

The construction sequence for each facility also differs, as multiple utilities such as industrial water, steam, air, electricity, and fuel gas must be secured before the main process plant responsible for production can begin operating. To ensure timely and high-quality construction, both accurate design and prompt procurement are critical. Hyundai E&C leverages its extensive project management experience along with advanced design coordination systems to respond effectively to the complexity of such site conditions.

What’s more, the Shaheen Project serves as a showcasing ground for advanced smart technologies. These include the modularization of the piperack to improve efficiency within a limited site area, and the application of Advanced Work Package (AWP) technology to systematically manage construction plans, material and design data, and preliminary work.

AWP is a comprehensive management system that integrates construction plans based on Installation Work Package (IWP), material and design information, and pre-construction activities. This system connects dedicated software programs with 3D models to provide a complete view of construction progress and material availability. It allows teams to identify potential delays or disruptions in advance and enables a rapid and effective response.

The current progress rate of the project has exceeded 63%. Upon mechanical completion in the first half of 2026 and the start of commercial operations, the facility will begin producing large quantities of ethylene, often referred to as the “rice” of the petrochemical industry. This is expected to significantly boost the competitiveness of the Korea’s petrochemical sector. Experts predict that the project will create up to 17,000 jobs and stimulate economic activity in the local construction industry. Led by Hyundai E&C, this mega project is expected to play a key role in strengthening Korea’s petrochemical competitiveness and in establishing a high efficiency production system.

Q. Why is the ethylene plant becoming increasingly relevant?

Ethylene plants are facilities that produce basic petrochemical feedstocks, often referred to as the “rice of the petrochemical industry.” All petrochemical plants primarily use ethylene, propylene, and other similar compounds as feedstocks to manufacture their products. Ethylene plants provide a stable supply of feedstock for these facilities. Moreover, ethylene is a highly versatile material with substantial economic spillover effects across various petrochemical products, making it a commodity with strong market demand.

Q. Can you share a memorable case from a challenging process you experienced?

The transportation of the 118m tall propylene separation tower stands out as the most memorable case. The client had significant concerns about transporting it via standard roads, but we were able to demonstrate its safety through 3D scanning simulations. We successfully completed both the transportation and installation without any issues, which was highly rewarding. This case clearly reflects Hyundai E&C’s technical expertise and problem-solving capabilities.

Q. What are you focusing on most to ensure successful completion by next June?

With progress now past 63 %, we’re moving into the key phase of installing core equipment, along with piping, electrical, and instrumentation work. In the time remaining, our top priority is safety, and we are committed to delivering the project with the highest quality to live up to the interest and expectations of everyone involved.