Shell confirms plan to build multi-billion cracker plant on Bukom

By Jeana Wong, Channel NewsAsia 27 Jul 06
full article

SINGAPORE : Energy giant Shell has confirmed that it is going ahead with plans to build a new world-scale ethylene cracker on Singapore's Bukom Island.

Shell is expanding its petrochemical operations in Singapore to capture a ready, growing demand in regional markets. Its new chemical cracker plant, when completed by 2010, will supply cracker products to its existing and potential joint venture plants, as well as its Jurong Island customers via undersea pipelines.

With a capacity of 800,000 tonnes a year, the cracker plant will nearly double Singapore's capacity to process ethylene.

A steam cracker is a petrochemical plant that turns naphtha and light hydrocarbons into ethylene, propylene, and other chemical raw materials.

Analysts say Shell has a surplus of naptha from its existing Singapore operations and it's betting on increasing global demand, especially from China. They say the oil giant will likely export its cracker products to China as the country continues to make everything for the world, including computer casings, car parts,
plastic toys and chairs.

However, they say companies worldwide are building cracker plants in China, India and countries in the Middle East, and it remains a question whether there would be an oversupply of ethylene plants.

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