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Expansion Management: Shell To Make Major Expansion Project in Singapore

SINGAPORE (September 29, 2006) — World-scale petrochemical facility will be a major provider of raw materials in Asia.  

Singapore’s petrochemicals industry has attracted one of its biggest construction projects to date from international chemicals and energy giant, Royal Dutch Shell plc.

In late July, Shell, which enjoys a local presence dating back to the 19th century, announced its biggest investment yet in the Republic. Named Shell Eastern Petrochemicals Complex (SEPC), the new integrated refinery and petrochemicals project will be threefold, and upon completion by 2010, will serve as a crucial raw materials provider to the Asian region.

“This project represents another significant step in Shell’s commitment towards delivering a profitable downstream business for the group,” said Rob Routs, executive director, downstream, for Shell. “Shell is committed to growing chemicals investments in Asia Pacific and the Middle East and [this] announcement is another example of how we are delivering on that strategy.”

The project in Singapore is just one of several new investments, planned or under construction by a number of producers, destined for the region.

“Asia is the world’s fastest growing market for petrochemical derivatives and during the next 10 years is likely to require several new ethylene crackers to meet this demand,” said Pieter Eijsberg, general manager of SEPC. “Singapore offers us a business-friendly environment, where we have excellent experience from previous investments.”

In addition to the proposed ethylene plant, Shell will commence work on another new plant — this one dedicated to Mono-Ethylene Glycol (MEG), with a capacity of 750,000 tpa. When completed, the facility will boost Shell’s MEG capabilities to 1.3 million tpa, and raise its profile to the third-largest MEG producer in the world. The MEG from the facility will be exported to countries around the region, as well as the large-scale China market.

“The world-scale MEG plant being planned for Jurong Island as part of the investment will consume a significant share of new ethylene capacity and is an integral part of the project,” Eijsberg said.

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