Energy giant ExxonMobil will be undertaking a multibillion-dollar expansion project of its manufacturing complex in Singapore to convert fuel oil and other bottom-of-the-barrel crude products into higher value lube base stocks and distillates. Engineering, procurement and construction activities for the expansion have begun and operations are expected to start in 2023.
“This investment by ExxonMobil signals its continued confidence in Singapore and our petrochemical industry. This investment will also create new and exciting new opportunities for Singapore companies and workers,” said Minister for Trade and Industry Chan Chun Sing, in a Facebook post.
The expansion of the facility will enable production of additional 20,000 barrels of its Group II base oil per day and also 48,000 barrels of cleaner fuels with lower sulphur content per day which meet the International Maritime Organisation’s 0.50 percent sulphur requirement. The company projects that expansion of the facility will significantly increase site downstream and chemical earnings potential.
“The demand for high-quality fuels and lubricants will increase as the global economy expands,” said Bryan Milton, president of ExxonMobil Fuels & Lubricants Company. “By using a combination of proprietary catalyst and process technologies, we will increase the site’s competitiveness and help meet growing demand for high-performance lubricants and cleaner fuels.”
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