Shell starts-up world-scale monoethylene glycol plant in Singapore
Nov 17, 2009
Shell Chemicals Limited has announced the successful start-up of its new world-scale monoethylene glycol (MEG) unit at the Shell Eastern Petrochemicals Complex in Singapore.
The unit started up as initially planned. With a nameplate capacity of 750,000 tonnes of MEG per annum, it is one of the largest in the world, reinforcing Shell’s ambitions to maintain a leading position in the expanding Asian petrochemicals market.
The Shell Eastern Petrochemicals Complex also includes a new 800,000 tonnes per annum ethylene cracker, a butadiene plant and modifications to Shell’s Bukom refinery, which are planned to start up in early 2010.
Mark Williams, Shell Downstream Director, said: “The commissioning of the MEG plant is a significant step towards the completion in early 2010 of the Shell Eastern Petrochemicals Complex in Singapore (SEPC). SEPC is our largest investment in Singapore and our largest petrochemicals investment to date, reinforcing our intention to continue to grow our Chemicals business selectively and to anticipate the needs of our customers in Asia.”
“When SEPC is fully operational,” Williams continued, “it will be our biggest, fully-integrated refinery and petrochemicals hub, from which we will enjoy economic and efficiency benefits in terms of feedstocks, operations and logistics.”
The Singapore 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.”
The new plant is on Jurong Island in Singapore, an ideal location to serve Asian customers from within the region. Asia currently accounts for around 70 per cent of global MEG consumption and much of the new capacity will be destined for China where the demand for MEG continues to grow.
For further information, please contact:
Shell Media Relations:
Tel: +31 70 377 3600
Shell Investor Relations:
Tel: +31 70 377 3996 / +44 207 934 3856
Tel: +1 212 218 3112
Notes to editors
MEG is a vital ingredient for polyester fibres and film, polyethylene terephthalate (PET) resins and engine coolants. End uses range from clothing and packaging to kitchenware and antifreeze.
The annual output from the MEG plant could make more than two million tonnes of polyester, enough to manufacture 6.7 billion polyester shirts – more shirts than there are people in the world.
The Shell OMEGA (Only MEG-Advantaged) process gives the highest commercial yields of MEG from ethylene. OMEGA plants also consume less steam; wastewater production is much lower; and the capital cost for a new OMEGA plant is about 10 per cent less than for a traditional plant with the same MEG capacity. CO2 emissions are also significantly reduced per tonne of MEG produced.
The companies in which Royal Dutch Shell plc directly and indirectly owns investments are separate entities. In this press release “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 press release refer to companies in which Royal Dutch 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 press release, 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 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.
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.
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 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 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, 2008 (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, 5 November 2009. 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.