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Opening ceremony for one of the world’s largest mono-ethylene glycol (MEG) plants

New Shell plant is a key component of the Shell Eastern Petrochemicals Complex (SEPC) in Singapore, on track for full completion in early 2010.
Purification column on MEG plant at SEPC

Purification column on the MEG plant at the Shell Eastern Petrochemicals Complex

Shell has delivered another world-scale project on schedule with the official opening of its mono-ethylene glycol (MEG) plant on Singapore’s Jurong Island today by Lim Hng Kiang, Singapore’s Minister for Trade and Industry and Ben van Beurden, Shell Executive Vice President Chemicals.

With a nameplate capacity of 750,000 tonnes of MEG per annum, the 100% Shell-owned unit is one of the largest MEG plants in the world. This plant is a key component of the Shell Eastern Petrochemicals Complex (SEPC), which is on track for full completion in early 2010. When SEPC is fully operational, it will be Shell’s largest, fully-integrated refinery and petrochemicals hub, bringing economic and efficiency benefits in terms of feedstocks, operations and logistics.

This new MEG plant marks another technology first for Shell. It is the first time Shell is using its award-winning OMEGA processing technology. The OMEGA process gives the highest commercial yields of MEG from ethylene. Production and operating costs are lower than a traditional MEG plant, less steam is consumed and less wastewater produced.

Ben van Beurden said:“ Singapore is already Shell’s largest petrochemical production and export centre in the Asia Pacific region, and the SEPC project is Shell’s largest Downstream investment in Singapore. The successful completion of the MEG plant,” he continued, “signifies another significant step in our strategy to grow our Chemicals business selectively to meet the needs of our Asia Pacific customers.”

“I am delighted that we are using our newest technology in our newest world-scale plant,” he added. “I believe the combination of OMEGA and the integration benefits with our refinery will be a winning formula that will position the MEG plant for a robust future.”

Minister Lim said: “The MEG plant marks an important milestone in the run-up to the completion of the Shell Eastern Petrochemicals Complex in 2010. We are delighted to have a partner like Shell, who continues to take a long-term view in their investments, and have trust and confidence in Singapore. With the continued growth momentum in Asia, Singapore remains a strategic base for companies looking to expand in Asia, and beyond.”

Construction on the MEG plant began in 2007, and since then, not one worker has taken time off because of an injury. This translates to 13.5 million hours without a lost time injury, a world-class achievement in safety performance.

The SEPC project comprises the MEG plant, a new 800,000 tonnes per annum Ethylene Cracker Complex (ECC), a butadiene plant, and modifications to the existing Pulau Bukom Refinery, which are planned to start up in early 2010. SEPC has been strategically located to take advantage of existing infrastructure and to ensure that maximum benefits are achieved by integrating the petrochemical site with the existing Bukom Refinery.

More than 200 hundred customers, guests, staff and media witnessed the opening of the Shell Singapore MEG plant. This was followed by a tour of the new plant. 

For further information, please contact:

Oh Yam Chew (Mr)
External Affairs & Communications
Shell Companies in Singapore
Tel.: +65 6384 8943/ +65 9764 0193
E-mail:  yam-chew.oh@shell.com

Notes to Editors

MEG is a key petrochemical intermediate that is used in the production of a wide range of consumer and industrial products, such as polyester fibres for clothing and furnishings, safety equipment, PET bottles, film, anti-freeze, coolants and others. The majority of the MEG produced at this new plant will be consumed in the Asia Pacific region, which accounts for 70% of global MEG consumption.

Cautionary Statement

This press release contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases.  Also included as a forward looking statement is our disclosure of reserves, proved oil and gas reserves, proven mining reserves, organic reserves, net reserves and resources. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this press release, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this press release are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2007 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader.  Each forward-looking statement speaks only as of the date of this press release. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this press release.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions.  We use certain terms in this press release that SEC's guidelines strictly prohibit us from including in filings with the SEC.  U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

Also in this press release we have aggregated our equity position in projects for both direct and indirect interest. For example, we have aggregated our indirect interest in the Pluto project via our 34% shareholding in Woodside Energy Ltd.