Shell Proceed with Integrated Petrochemicals Complex in Singapore

Shell Eastern Petroleum (Pte) Ltd (SEPL) has taken a final investment decision to proceed with the construction of a new world-scale ethylene cracker on Bukom Island, Singapore. Named Shell Eastern Petrochemicals Complex* (SEPC), the integrated refinery and petrochemicals project will also include modifications and additions to the Bukom refinery and a new world-scale Mono-Ethylene Glycol (MEG) plant utilising Shell's proprietary technology on Jurong Island.

Detailed engineering design and procurement work is progressing well with construction on the ethylene cracker due to begin later this year and start-up of the new and modified facilities anticipated by 2009/ 2010.

The cracker and the new MEG plant will create an advantaged site through full integration with the Bukom refinery enabling feedstock and operating benefits. The 800,000 tonnes per annum-cracker will be ideally positioned to supply cracker products to the new 750,000 tonnes per annum MEG plant, planned and existing joint venture derivatives plants and to major customers on Jurong Island via existing undersea pipelines. The majority of MEG production is expected to be consumed in the region where there is considerable demand growth expected.

"This project represents another significant step in Shell's commitment towards delivering a profitable downstream business for the Group. Shell is committed to growing Chemicals investments in Asia Pacific and the Middle East and this announcement is another example of how we are delivering on that strategy." said Rob Routs, Executive Director Downstream.

"We are delighted to have the green light for this project and would like to thank the Singaporean Government for its invaluable support. Shell has been in Singapore now for over 100 years and our decision to build a new cracker represents the latest in a long line of investments in Singapore. This project reaffirms our commitment to grow our business here to serve the fast growing petrochemicals demands of this region." said Tan Ek Kia, Vice President Ventures and Developments APME.

*Shell Eastern Petrochemicals Complex is not a business entity.

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Posted 28/07/06

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