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ExxonMobil expanding Singapore complex to raise cleaner fuel output
EXXONMOBIL on Tuesday committed to a multibillion-dollar expansion of its Jurong Island integrated manufacturing complex.
The expanded facilities will enable the oil company to convert fuel oil and other bottom-of-the-barrel crude products into higher-value lube base stocks and distillates.
The American oil and gas giant expects the project to significantly increase site downstream and chemical earnings potential.
The investment will raise the facility's capacity to produce an additional 20,000 barrels per day of its Group II base stock oil and 48,000 barrels per day of cleaner fuels with lower-sulphur content.
The latter will include high-quality marine fuels that enable customers to meet the International Maritime Organization's 0.5 per cent sulphur requirement.
Engineering, procurement and construction activities for the expansion have started, with operations expected to start in 2023.
Karen McKee, president of ExxonMobil Chemical Company, said the project applies new chemicals technologies and leverages integration across the crude cracker and refining complex.
Minister for Trade and Industry Chan Chun Sing said on Tuesday that the investment by ExxonMobil signals its continued confidence in Singapore and its petrochemical industry, and will create new opportunities for Singapore companies and workers.
"ExxonMobil has been a close and trusted partner and they have played a significant role in the development of Singapore's vibrant petrochemical industry. Singapore's strong and trusted brand name, skilled work force and pro-enterprise environment have allowed us to distinguish ourselves from the competition and remain attractive to major foreign investors," said Mr Chan in a Facebook post.
ExxonMobil's project represents the latest and most significant in its series of recent investments in base stock production.
Previous base stock investments include a 2015 expansion in Singapore and the setting up of a world-scale, enhanced hydrocracker unit in Rotterdam in 2018.
Energy companies, including ExxonMobil, recorded enormous profits last year, with the five "supermajors" - Chevron, ExxonMobil, BP, Royal Dutch Shell and Total of France - earning nearly US$80 billion in global net profits.