Jurong Aromatics complex set to start up soon: chief exec

[SINGAPORE] With project construction practically wrapped up, the US$2.4 billion Jurong Aromatics Corporation (JAC), Singapore's newest integrated refinery/aromatics complex, is set to start up anytime now.

JAC's chief executive officer, Dai Yu, disclosed in a message on the corporation's newly established website that "our baseline schedule set at the commencement of the project in 2011 is to start up in August 2014. However, we have been targeting to start up earlier and I am pleased to see it is happening soon."

"We have achieved operational readiness and are fully geared for start-up and commercial operations," he added. This includes staffing, where JAC is now at full strength, with all departments working together seamlessly, and employees well-trained for their roles, he said.

Located on a 58-hectare site on Jurong Island, the JAC complex includes a 100,000-barrels-per-day condensate splitter which - unlike an oil refinery processing crude oil - will process natural gas condensates from the Middle East into naphtha for its main aromatics complex.

The complex's "main value driver" will be its production of 1.5 million tonnes per annum of aromatics, comprising 800,000 tonnes of paraxylene, 438,000 tonnes of benzene and 200,000 tonnes of orthoxylene. The aromatics have a wide range of applications across myriad industries which include textiles and clothing, construction, tyres, sports equipment and plastics.

"Demand for these aromatics products, which are key raw materials used in a wide range of end applications, is steadily increasing, particularly in China and India," JAC said.

Other high-value products co-produced in the process include jet fuel, ultra-low sulphur diesel, light naphtha, liquefied petroleum gas, hydrogen and fuel oil. When the plant is fully operational, a total of 2.5 million tonnes of petroleum products will be produced each year.

JAC's start-up will also trigger the first-time use of the $1.7 billion Jurong Rock Cavern, as the aromatics complex is the first customer for the underground oil storage. It will occupy most of JRC's first two caverns of 480,000 cubic metres.

Despite the challenging times, what has supported the project is that JAC is practically "underwritten" by its eight shareholders, made up of international feedstock suppliers, petrochemical product offtakers, trade and financial investors, as well as the Singapore government.

These are SK Group, Jiangsu Sanfangxiang Group, Arovin of Vinmar Group, Glencore, Shefford Investments, UVM, EDB Investments and Essar Group.

"Our portfolio of suppliers and offtakers are reputable industry players with established track records and solid credit ratings. Most importantly, our condensate suppliers are also significant product offtakers. This alignment of interests amongst the stakeholders provides additional security of feedstock supply."

"All of JAC's supply and offtake volumes have been contracted on long-term agreements, thereby ensuring the company's long-term viability," JAC said.