S-Oil will start commercial operations at its Shaheen Project in early 2026. The program carries a total investment of KRW 9 trillion. The company confirmed the startup window this week, as reported by Asia Business Daily (아시아경제).

The figure leads the story. KRW 9 trillion is roughly USD 6.5 billion at recent exchange rates. That places Shaheen among the largest single downstream investments in South Korea in the past decade. The startup timing moves it from construction status to commercial operations early next year.

What is the Shaheen Project?

Shaheen is S-Oil's major refining and petrochemical expansion at its Ulsan complex on South Korea's southeast coast. S-Oil operates as an affiliate of Saudi Aramco, which holds a controlling stake in the refiner. The project name means "falcon" in Arabic.

The investment scale defines the project's weight. Key facts as confirmed:

• Total investment: KRW 9 trillion
• Operator: S-Oil
• Location: Ulsan, South Korea
• Commercial operations: early next year
• Status: construction phase, transitioning to startup

The source report did not specify the exact month of startup or detailed unit capacities. S-Oil has not published a revised commissioning schedule beyond the early-next-year window.

Why does the timing matter?

Startup timing drives margin capture. A large-scale downstream project entering commercial operations shifts product slate — the mix of fuels and petrochemical outputs a refinery sells — at a moment when Asian petrochemical margins remain under pressure from new Chinese capacity. The KRW 9 trillion outlay only earns a return once the units run at commercial rates.

Early next year gives S-Oil a defined window. Commissioning a complex of this size typically involves staged unit startups, sequence testing and ramp-up over several months before full rates. The company has not disclosed the ramp profile.

What happens next?

Watch for the formal startup declaration. S-Oil will confirm first commercial production, unit-by-unit commissioning milestones and initial throughput figures in its quarterly disclosures. The startup date is the key item: early next year, at Ulsan, on a KRW 9 trillion investment.

By Olivia Hart, Rig & Refinery