Oil major ExxonMobil Corporation’s (XOM) Singapore Chemical Plant has started producing ethylene from the facility’s second world-scale steam cracker. This represents the conclusion of a multi-billion dollar expansion project at its Singapore petrochemical complex.
Integrated within the existing petrochemical plant, this expansion has brought online a 1 million ton per year (tpy) steam cracker. The petrochemical complex on Jurong Island, which is powered by a 375-megawatt cogeneration plant, is expected to witness a boost in production in three of its polyethylene plants, two polypropylene plants, a specialty metallocene elastomers unit and the expanded oxo-alcohol and aromatics units, over the next few weeks.
The expansion has resulted in about 1.4 tpy higher yield of polymers and elastomers, which are already used for commercial purposes. The upgraded complex is currently largest global facility of the company. It is expected to generate about 2.6 million tpy of petrochemicals targeted at meeting regional demand.
According to industry sources, the project was scheduled to begin operations at the end of 2011 but was postponed due to its complexity and a weak economic outlook.
The expansion of the complex was completed in Dec 2012. Currently, it is producing commercial grades of new products, such as specialty metallocene elastomers, for the first time in the Asia Pacific region. Ethylene is a feedstock for producing polymers used in plastics production.
This expansion gives ExxonMobil exceptional feedstock flexibility and positions the Singapore petrochemical complex well to meet demand in the growth markets such as China, the Indian sub-continent and beyond.
ExxonMobil’s presence in Singapore goes back to more than 120 years. The company is one of Singapore’s largest foreign manufacturing investors. ExxonMobil has augmented refining and petrochemical production in Singapore to meet anticipated demand for transportation fuels and the chemicals utilized for plastics and other manufacturing across the Asia Pacific region.
ExxonMobil carries a Zacks Rank #3 (Hold). However, there are other Zacks Ranked #1 (Strong Buy) stocks – Enerplus Corporation (ERF), Gulfmark Offshore, Inc. (GLF) and Newpark Resources Inc. (NR) – which appear attractive as these are expected to outperform over the next few months.
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