Saudi Arabia’s state-owned oil company announced a major investment in South Korea today during Crown Prince Mohammed bin Salman’s visit.
Aramco will invest $7 billion in a petrochemical “steam cracker” in the east Asian country. The investment, which is named the Shaheen project, is Aramco’s largest-ever in South Korea. The project will be located at an existing site belonging to the South Korean energy company S-Oil, according to a press release.
What it means: A steam cracker is a petrochemical facility that breaks hydrocarbons down into lighter ones, such as ethylene, which is used to make many everyday items. The Aramco-funded steam cracker in South Korea will produce ethylene, as well as propylene, butadiene and other chemicals.
Why it matters: The announcement came during Prince Mohammed’s official visit to South Korea. Yesterday, the prince, aka MBS, met with South Korean Prime Minister Han Duck-soo to discuss boosting Saudi-Korean cooperation. Mohammed brought numerous defense, investment and other officials to the meeting, according to the official Saudi Press Agency.
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