S-Oil and Shinhan Bank join forces on low-carbon initiatives

S-Oil CEO Anwar A. Al-Hejazi, right, and Shinhan Bank CEO Jung Sang-hyuk pose for a photo during a signing ceremony held at Shinhan Bank headquarters in Jung District, central Seoul, on Wednesday. [S-OIL]

S-Oil signed a sustainability agreement with Shinhan Bank for low-carbon transition, the oil refiner said Thursday.

With the signing of the memorandum of understanding (MOU), the two companies agreed to join forces to respond to the climate crisis through financial support programs. S-Oil and Shinhan Bank also plan to cooperate on joint businesses in the sustainability sector.

Moreover, S-Oil will also discuss securing government-led funding for its ongoing projects to build new facilities involving hydrogen, biofuels, and fuel cells with Shinhan Bank.

The latest MOU is aimed at accelerating the low-carbon transition of S-Oil, according to the oil refiner.

S-Oil, which is currently 63.41 percent owned by Saudi Arabia’s state-run Aramco, broke ground for its 9-trillion-won ($6.6 billion) petrochemicals project in Ulsan in March.

The “Shaheen” project, meaning falcon in Arabic, involves the building of a 3.2-million-ton petrochemical production facility in the southeastern city by 2026. The goal is to diversify its business away from the traditional oil refining business, and also enhance its overall energy efficiency to reduce carbon emissions.

“Through the latest ESG [environmental, social, and governance] financial support, we will now be able to proceed with a range of investment projects to respond to the energy transition and carry out sustainable growth,” said an S-Oil spokesperson.

The signing ceremony took place on Wednesday at Shinhan Bank’s headquarters in Jung District, central Seoul, with S-Oil CEO Anwar A. Al-Hejazi and Shinhan Bank CEO Jung Sang-hyuk in attendance.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]