The most expensive catalyst decision a refiner can make is sticking with the wrong one too long. SK Energy did not make that mistake.

By: Junghwa Yoon, Technical Service Engineer, Ketjen

For years, SK Energy’s flagship refinery in South Korea ran a strategy built around propylene. It made sense. Asian petrochemical demand was strong, and the refinery was well positioned to supply it.

Then the economics shifted. Propylene margins weakened after the pandemic. Demand for high-octane gasoline picked up. The catalyst strategy that had worked for a decade was now leaving money on the table.

The Strategy Shift

Rather than wait for a scheduled turnaround to address it, SK worked with Ketjen to reformulate. The DENALI® ACTION catalyst was tailored specifically for SK’s unit: a residue-fed cracker that processes some of the heaviest, most complex feedstocks in the region. The goal was to shift yields toward higher-octane gasoline products and more valuable liquefied petroleum gas without touching the hardware.

Results

The three-month trial, which began in November 2024, delivered a $0.79-per-barrel improvement in economics. Gasoline octane rose 1.7 points. The shift toward more valuable gas components improved the value of everything the unit produced. Catalyst performance held steady despite higher contaminant levels in the feed.

SK is now running a blend of its original catalyst and DENALI ACTION, adjusting the ratio as market conditions evolve. That kind of flexibility — the ability to tune the yield slate in response to price signals — is increasingly what competitive refining looks like in Asia-Pacific.

The lesson is not specific to SK or to Asia. Any refinery running a catalyst strategy calibrated to last year’s market is likely leaving value behind. Ketjen’s technical teams can help identify where and by how much