SK Energy Co., Ltd. will license Chevron Lummus Global’s vacuum residue desulfurization (VRDS) technology produce low sulfur fuel oil (LSFO) at the company’s grassroots facility in Ulsan, South Korea. SK will use this technology to meet the International Maritime Organization’s (IMO) clean fuel requirements in January 2020.
This award is part of an ongoing relationship that CLG has with SK Energy Co., Ltd to process heavy residuum refinery streams and follows other similar projects such as VRDS unit 1, and both RDS units 1 and 2, one of which was also revamped for added capacity and flexibility.
CLG’s long association with SK at Ulsan includes these residuum upgrading units, three lubes hydroprocessing plants, a heavy oil hydrotreater and through its exclusive arrangement with Advanced Refining Technologies (ART), the supply of catalysts to multiple hydroprocessing units.
“This award reinforces CLG’s position as a key contributor in the clean fuels and lubricants space,” said Ujjal Mukherjee, CLG’s managing director. “This unit will allow the customer to process cheaper residual fuel oil and produce high-value products including diesel and naphtha.”
Chevron Lummus Global is a joint venture between Chevron U.S.A. Inc. and McDermott, a leading process technology licensor for refining hydroprocessing technologies and alternative source fuels, as well as a global leader in catalyst system supply.