Rescue package tabled for S$3.2b Jurong petrochem plant

Singapore

RESCUE operations could be underway to revive Jurong Aromatics Corporation's (JAC) S$3.2 billion petrochemical facility, which has been idling on Jurong Island for about seven months now.

Jurong Energy Investment Corporation (JEI) - a company jointly established by Arovin and Sheffold Investments, which have a combined 20 per cent stake in JAC - and commodities trading house Trafigura have issued JAC a proposal to restart its facility within the next two months.

The proposal comes in at the eleventh hour. JAC's plant started up last August. If the project has a repayment holiday of about a year after commissioning, institutions would expect repayments to start soon.

JEI's chief operating officer Daniel Palsson told The Business Times that the proposal outlines a fully funded deal to finance the start-up operations of JAC's facility. The deal includes the funding of JAC's working capital requirement and facilitating condensat…