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Shell invests to increase capacity at world-scale petrochemical complex in Singapore

Shell announced today that it has taken a final investment decision to ‘debottleneck’ its Singapore ethylene cracker on Pulau Bukom (Bukom Island). This is expected to increase the capacity of olefins and aromatics by more than 20 per cent. Engineering work for the debottleneck will take place during the next maintenance turn-around of the cracker.
Night shot of ethylene cracker

Night shot of Shell’s ethylene cracker on Pulau Bukom, Singapore

The ethylene cracker opened in March 2010 and is a major component of the Shell Eastern Petrochemicals Complex (SEPC) project, Shell’s largest-ever petrochemicals investment. It is integrated with Shell’s largest refinery, on Pulau Bukom, and with its world-scale mono-ethylene glycol plant on nearby Jurong Island.

“Our Singapore ethylene cracker was designed with potential capacity expansion in mind and I am delighted to confirm this debottlenecking,” said Ben van Beurden, Executive Vice President for Shell Chemicals.

“The investment will generate additional volumes to help us meet growing demand from our customers in the region. It will also further unlock value from integration with our refinery and our derivatives activities on Jurong Island. This integration is key to our strategy.”

Dr Huck Poh, Manufacturing Director for Shell Singapore, underlined the significance of this investment, “This project reinforces Shell’s commitment to Singapore, which is already our largest petrochemicals production and export centre in the Asia Pacific region.”

Notes to editors

About the SEPC project

  • The SEPC project included a new ethylene cracker complex, a world-scale mono-ethylene glycol plant, and modifications to the existing Pulau Bukom refinery.
  • The project was strategically located to take advantage of existing infrastructure and to ensure that maximum benefits are achieved by integrating the petrochemical site with Shell’s Bukom oil refinery.
  • Bukom refinery was modified to enable it to produce feedstock for the ethylene cracker.
  • This integration delivers operating efficiencies and valuable by-products, as well as the ability to use feedstock from the adjacent refinery rather than importing from elsewhere.
  • The production capacity of the SEPC project includes:
    • 800,000 tonnes per annum of ethylene
    • 750,000 tonnes per annum of mono-ethylene glycol
    • 155,000 tonnes per annum of butadiene
    • 450,000 tonnes per annum of propylene
    • 230,000 tonnes per annum of benzene

About Shell Chemicals

Shell Chemicals has been a leading player in the manufacture and sale of bulk petrochemicals to large industrial customers for more than 80 years. We have been ranked the world’s sixth largest petrochemical company based on turnover. In 2011, we sold more than 18 million tonnes of product and achieved record earnings of over $2 billion. Our world-class manufacturing plants in major markets around the world and strong product portfolio are underpinned by strong technical heritage and market-leading proprietary technologies, innovation and excellent customer relationships. We draw particular strength from being part of an integrated energy company, through which we leverage infrastructure efficiencies, upstream feedstock flexibility, and manufacturing and processing expertise.

For further information, please contact:

Singapore
Serene Loo, Shell Spokesperson, Asia Pacific
Tel: +65 6384 8943 / +65 9729 7294
Email: serene.loo@shell.com

UK
Yam-Chew Oh, Global External Communications Adviser – Chemicals
Tel: +44 20 7934 2253 / +44 7837 955 995
Email: yam-chew.oh@shell.com

Shell definitions & cautionary note:

Resources: Our use of the term “resources” in this announcement includes quantities of oil and gas not yet classified as Securities and Exchange Commission of the United States ("SEC") proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions.

The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this announcement "Shell", "Shell Group" and "Royal Dutch Shell" are sometimes used for convenience where references are made to Royal Dutch Shell plc and its subsidiaries in general. Likewise, the words "we", "us" and "our" are also used to refer to subsidiaries in general or to those who work for them. These expressions are also used where no useful purpose is served by identifying the particular company or companies. "Subsidiaries", "Shell subsidiaries" and "Shell companies" as used in this announcement refer to companies in which Shell either directly or indirectly has control, by having either a majority of the voting rights or the right to exercise a controlling influence. The companies in which Shell has significant influence but not control are referred to as "associated companies" or "associates" and companies in which Shell has joint control are referred to as "jointly controlled entities". In this announcement, associates and jointly controlled entities are also referred to as "equity-accounted investments". The term "Shell interest" is used for convenience to indicate the direct and/or indirect (for example, through our 23 per cent shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

This announcement contains forward looking statements concerning the financial condition, results of operations and businesses of Shell and the Shell Group. 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 Shell and the Shell Group 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", "goals", "intend", "may", "objectives", "outlook", "plan", "probably", "project", "risks", "seek", "should", "target", "will" and similar terms and phrases. There are a number of factors that could affect the future operations of Shell and the Shell Group and could cause those results to differ materially from those expressed in the forward looking statements included in this announcement, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for Shell's products; (c) currency fluctuations; (d) drilling and production results; (e) reserves estimates; (f) loss of market share 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 regulatory measures addressing climate change; (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 announcement 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 Shell's 20-F for the year ended 31 December 2011 (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 announcement, 15 November 2012. Neither Shell nor any of its subsidiaries nor the Shell Group 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 announcement.

Shell may have used certain terms, such as resources, in this announcement that the SEC strictly prohibits Shell from including in its filings with the SEC. U.S. investors are urged to consider closely the disclosure in Shell's 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.