Singapore – Oil & Petrochemical Industry
General Information
Singapore is the undisputed oil hub in Asia, although the island has no natural oil or gas resources. The Island State is
one of the world`s top three exporting refinery centres and the most cost-effective location for producing
petrochemicals. The reasons for its success are the geographical advantage, outstanding logistics, a stable political
system and therefore an excellent investment environment. The heart of Singapore`s petrochemical industry is Jurong
Island, a large land reclamation project which was completed in 2009. Despite the late global economic uncertainties
the petroleum and chemicals market’s total annual output for 2012 was higher compared to a year earlier at S$102.06
billion, an increase of about 5 per cent. According to the Singapore government’s Statistics Department, petroleum
logged in at S$57.4 billion, petrochemicals at S$32.96 billion, specialty chemicals at S$9.78 billion and others S$1.91
billion. Accounting for 33.9 per cent of total manufacturing output and therefore being Singapore’s top contributor to
manufacturing gross national product (GDP).
Jurong Island – Singapore`s Energy & Chemical Hub
Jurong Island is an artificial island that was formed from the amalgamation of seven southern offshore islands. The
centerpiece of Singapore`s chemical industry has a land mass of 3000 ha and has been selected as operation base by
95 leading petroleum, petrochemical, specialty chemical and supporting companies like BASF, Lanxess, Exxonmobil,
Dupont, Mitsui Chemical, Chevron Texaco, Shell, Sumitomo Chemical, CIBA and Huntsman. Jurong Islands offers
investors a “plug and play” environment. Built from the scratch, Jurong Island met all investor requirements (basic
infrastructure, logistics, services and access to the feedstock as well as highly educated workforce) right from the
beginning. The Chemical Hub comprises approx. 8000 employees and has drawn over SGD 30 billion of fixed asset
investments. The system of industry integration allows companies to “buy and sell” feedstock and products. The
output of one plant delivers input for neighboring plants. Third party providers enable companies to outsource
functions like waste water treatment, steam or hydrogen as well as storage requirements to support manufacturing
plants. This integration of utilities and logistics creates production synergies leading to a cost efficient structure,
which allows companies to focus on their core business activities.
“Singapore is committed to grow the energy and chemical sector in a competitive and sustainable manner”
Mr Teo Chee Hean, Deputy Prime Minister, Singapore, in: BIZQ April, May, June 2011
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Further Developments
To ensure the success of Jurong Island and to enhance the
competitiveness, Singapore encouraged “Jurong Island version 2.0”. It
is a ten-year master-plan focusing on five areas, namely, water,
environment, energy, alternative feedstock options, and transport &
logistics. According to this plan, they want to add shared pipelines,
utilities and logistics along with the existing “plug and play” system.
To increase their energy options, Singapore invested in a Liquefied
Petroleum Gas (LPG) terminal and also in a Liquefied Natural Gas
(LNG) receiving terminal. The facility will be an open-access multiuser terminal, capable of importing and re-exporting LNG from
multiple suppliers. The LNG receiving terminal was completed in 2013
and commenced operations on 7 May 2013. It has an initial capacity of
3.5 million tonnes per annum (Mtpa). This capacity will increase to 6
Mtpa by the end of 2013 when a third tank, a second jetty and regasification facilities are completed. The terminal’s
throughput capacity will further rise to 9 Mtpa when the fourth tank and its related regasification facilities are
constructed.
Jurong Rock Caverns (JRC)
(model attached)
JRC is an immense project on Jurong Island driven by Jurong Town Council Corporation (JTC). JTC is Singapore’s
leading industrial infrastructure specialist with the mission to plan, promote and develop a dynamic industrial
landscape. JRC will be the first underground oil storage facility in South East Asia. The SGD 950 million project is
being built 130 m beneath the Banyan Basin. It will provide safe and secure storage for liquid hydrocarbons such as
crude oil, condensate, naphtha and gasoil. The rock cavern itself will be up to 27 m high and 20 m wide, equivalent to
a 9 storey building. This first phase will consist of 8 km of tunnels and five caverns with a total storage capacity of
1.47 million m³. The second phase will almost double JRC’s storage capacity. It will add 1.32 million m³ of storage
space, when completed by 2014. Tankers will dock overhead and pipes and pumps will either conduct the oil out of
the tanker into the ground or from the storage caverns into the waiting ships. Nearby refineries and petrochemical
companies will be connected to the JRC as well.
Chemical LogisPark
To stay competitive in the fast-paced business environment of the oil & petrochemical industry it is important to have
the ability to move products swiftly and efficiently across borders. The new logistics parks, Banyan and Meranti
Logispark were built on Singapore`s traditional strength as a shipping port to position the city-state as a premier
chemical transshipment center. Banyan Logispark with 80 ha is dedicated to third party logistics services (chemical
warehousing, tank filling, cleaning, maintenance, drumming and water treatment facilities). Meranti with 90 ha has
been designed for oil storage and to support oil-related activities for companies on Jurong Island and southeast Asian
region.
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Companies & Products & Investments
LANXESS announced the construction of a new 200.000 m² butyl rubber facility with an outcome of
100.000 tons per annum (tpa). The investment SGD 712 million is the largest investment in the
history of LANXESS. As part of a long-term agreement the neighboring Shell petrochemical refinery
will supply the feedstock for the key raw material isobutene.
The new plant of ExxonMobil is a multibillion dollar project. ExxonMobil is set to become the
largest petrochemicals company in Singapore. The new plant was completed in 2012 and will be
fully integrated in the existing refinery. Products: 1.3 mtpa of polyethylene, 450.000 (tpa) of
polypropylene, 300.000 tpa of elastomers, 340.000 tpa of benzene, 125.000 tpa of oxo-alcohol,
80.000 tpa of paraxylene.
The Shell Eastern Petrochemicals Complex (SEPC) is Shell’s largest ever petrochemicals investment
and is Shell`s Asian Hub. It is a fully integrated refinery and petrochemicals complex and is able to
produce 800.000 tpa ethylene, 750,000 tpa monoethyleneglycol (MEG), 155,000 tpa butadiene,
450,000 tpa propylene and 230,000 tpa benzene.
The new plant of the Jurong Aromatics Corporation (JAC) is a world-scale aromatics complex, which is a joint
venture of eight shareholders. The SGD 3.05 billion fully integrated condensate splitter and aromatics plant is
expected to commence operation in 2014. It has been designed to produce 1.5 mtpa of benzene, orthoxylene,
paraxylene, toluene and ethylbenzene alongside 2.5 mtpa of fuel.
Outlook & upcoming projects
Asia’s demand for petrochemicals, advanced materials and specialty chemical products will increase. Therefore,
Singapore has to enhance the competitiveness and sustainability of the oil & petrochemical sector especially on
Jurong Island to widen Singapore`s lead as Asia`s energy and chemical hub. Key features for this development are
Research and Development as well as investments into exploration and production (E&P). High-Tech manufacturing
processes and product differentiation is necessary for growth in the competitive industry environment.
Another crucial development in the Jurong Island 2.0 initiative, was initiated this year by the Dutch oil and chemicals
storage giant Royal Vopak, which announced that it will be building Southeast Asia’s first independent liquefied
petroleum gas (LPG) facility in Singapore. This facility is expected to be completed in the first quarter of 2016 on
Jurong island with an initial capacity of 80,000 cubic meters (cbm). With the completion of all its recently announced
projects on Jurong Island and on Pulau Sebarok, Vopak will have close to 3.3 million cubic meters of combined oil and
petrochemicals storage in Singapore alone. In addition the Singapore LPG terminal, which is also the first such facility
in South-east Asia, will be built at Vopak's Banyan terminal on the petrochemicals island.
Furthermore the German company Evonik Industries is nearly doubling the capacity of its oil-additives plant on
Jurong Island, which will make it the largest of six such manufacturing sites it has worldwide. The expansion works
will be completed in early 2015, and will enable Evonik to meet the fast-growing demand for oil additives in the AsiaPacific. Reasons for the expansion of the oil-additives plant in Singapore are related to the excellent supply chain
logistics, existing infrastructure, strong intellectual property or IP protection, skilled workforce and support from the
Economic Development Board.
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Very Large Floating Structure (VLFS)
VLFS is a series of seaborne floating platforms for stocking oil and petrochemical
products. The moored or standalone units will be made of fire-resistant concrete.
The storage capacity of 300.000 m³ won`t occupy more than 5 ha. The same storage
capacity onshore would need 20 ha of conventional facilities. Once the studies are
completed and the project goes into execution as planned, Singapore will be the
first in the world with a floating oil storage structure made of concrete.
Model of Jurong Rock Caverns
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Upcoming Events:

OSEA is the biennial tradeshow that has served the offshore Oil & Gas market and its
supporting industries since 1976. The Platinum Edition (20th) of OSEA will be held from 2 – 5
December 2014 at Marina Bay Sands, Singapore. Established as the region’s most wellattended Oil & Gas event, it has continuously attracted a high quality attendance. Tapping
into the region’s increasing need for more sophisticated technologies and solutions, an
international representation of exhibitors will put up a comprehensive showcase for buyers
from Asia and beyond.
(For further information: www.osea-asia.com)
Sources:
http://www.edb.gov.sg
http://finance.yahoo.com/news/Research-and-Markets-bw-1239639287.html?x=0
http://www.pcs.com.sg/complex/jurong.asp
http://www.chemicals-technology.com/projects/exxonmobilpetrochem/
http://www.chemicals-technology.com/features/feature78187/
http://www.business.gov.sg/EN/Government/GovernmentAssistance/TypeOfAssistance/TaxIncentives/ProductDevelopmentNInnovation/gp_iras_lib
RnD.htm
http://www.w-goodway.com/site/gallery_chemicals.php
http://www.cpec.nus.edu.sg/myweb/newsletter/news3/jurong.html
http://www.sedb.com/content/edb/sg/en_uk/index/news/articles/singapore_is_poised.print.html
http://www.sedb.com/edb/sg/en_uk/index/news/articles/asia_s_most_important.html
http://www.jtc.gov.sg/industrycluster/Chemicals/NewDev/JRC/Pages/index.aspx
http://www.jtc.gov.sg/industrycluster/Chemicals/NewDev/LogisParks/Pages/index.aspx
http://www.sedb.com/etc/medialib/downloads/industries.Par.99517.File.tmp/Jurong%20Island%20Factsheet.pdf
http://transportationandstorage.energy-business-review.com/news/singapore_starts_lng_terminal_construction_at_jurong_island_100401
http://www.owbunker.com/files/News/04%20SCM%20Bunker%20Asia%202011%20press%20release%20V3%20draft%203%20FINAL_05%2009%2011.pdf
http://www.jurong.com/edm/integrate/mar2011/index.html
http://www.sedb.com/content/edb/sg/en_uk/index/news/articles/monthly_manufacturing_performance_may_2011.print.html
http://download.sbf.org.sg/bizq/apr_jun11.pdf
http://www.agapems.com.sg/News%20&%20Press/19%20April%2011%20%20Floating%20oild%20storage%20taking%20shape.pdf?token=312b1c4a4c2dcd73ef713be23abfcc3d6be26627|1316677830#PDFP
http://www.slng.com.sg/news-project-updates.html
http://www.ema.gov.sg/LNG/LNG-terminal-development/
http://www.channelnewsasia.com/news/business/singapore/shell-to-build-two-new/890992.html
http://www.sgprocessindustries.com/Indprof/ASPRI/DSPCI1314%20ED01.pdf
http://www.sgprocessindustries.com/Singlenews.aspx?DirID=181&rec_code=917872&title=%20Vopak%20to%20build%20LPG%20terminal%20on%20Juro
ng%20Island
http://www.sgprocessindustries.com/Singlenews.aspx?DirID=181&rec_code=899606&title=%20Evonik%20expanding%20S%27pore%20plant
pictures:
http://multivu.prnewswire.com/mnr/prne/shell/42417/
http://en.wikipedia.org/wiki/File:Jurong_Island_locator_map.png
http://www.bklynboy.com/jurongisland.html
http://www.jtc.gov.sg/resources/archiveperiscope/periscope_2007_06/news-perspectives/article01.htm
http://www.odin.fm/Gallery/gallery.asp?action=viewimage&categoryid=&text=&imageid=197&box=&shownew=
http://www.aokrubber.com/rubber-sheets/Butyl-Rubber-Sheet.htm
http://unitedpolychemco.com/product3.htm
http://www.alibaba.com/buyofferdetail/103504795/Polypropylene_copolymer.html
DATE: December 2013
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