Shell completes its largest petrochemicals project
May 3, 2010
The Shell Eastern Petrochemicals Complex (SEPC) project in Singapore has created Shell’s largest, fully-integrated refinery and petrochemicals hub.
SINGAPORE - Shell today announced the successful completion of the Shell Eastern Petrochemicals Complex (SEPC) project in Singapore. SEPC is Shell’s largest petrochemicals investment to date and the second world-scale petrochemicals project the company has completed in Asia in four years. The completion of the project reinforces Shell’s intention to remain a leading player in the expanding Asian petrochemicals market.
"This project clearly demonstrates Shell’s strategy to focus on growth markets and to integrate oil and chemicals manufacturing to gain efficiencies," said CEO Peter Voser. "Creating Shell’s largest integrated site will bring considerable synergies in terms of feedstocks, operations and logistics. Our ambition is to grow in the dynamic Asian petrochemicals market, where we are already a leading player.
"Through SEPC, we have once again shown we have the expertise and technologies to undertake and deliver world-scale, complex hydrocarbon projects not only on time, but also with an outstanding safety record."
Shell designed the new facilities to maximise the benefits of locating refining and petrochemicals production within a single manufacturing hub on Bukom and Jurong islands, just off the Singapore coast. Jurong Island is a major petrochemical zone which provides opportunities for further integration with current and potential customers, as well as in Shell’s own operations.
Each of the new chemical production units started up as planned. They include a world-scale ethylene cracker, which started up in March, and one of the world’s largest mono-ethylene glycol plants, which has been producing since November 2009. The project also included modifications to the Shell Pulau Bukom Refinery, enabling it to process a wider range of crudes to supply feedstock to the cracker. A new ethylene jetty and cryogenic terminal enable the import and export of ethylene.
Shell has a deep and long-standing relationship with Singapore that spans almost 120 years. Today it serves as Shell’s Asian hub for petrochemicals.
Notes to Editors
SEPC project facts:
- The additional capacity brought on stream by the SEPC project includes:
Ethylene: 800,000 tonnes per annum
Mono-ethylene glycol: 750,000 tonnes per annum
Propylene: 450,000 tonnes per annum
Benzene: 230,000 tonnes per annum
Butadiene: 155,000 tonnes per annum
- The world-scale ethylene cracker makes building blocks for the chemical industry, which in turn are turned into many materials in everyday life, from clothing to automotive parts. The cracker can process a range of feedstocks and this flexibility can help to maximise returns as economics shift between hydrocarbon streams.
- In November 2009 the project started up one of the world’s largest and most efficient monoethylene glycol (MEG) plants. Located on Jurong Island and supplied with feedstock from the nearby cracker, the MEG unit is now supplying raw materials for the growing packaging and textiles industries in Asia.
- A new butadiene extraction unit on Bukom Island is due on stream in the coming weeks. Butadiene is primarily used in the manufacture of synthetic rubber products, including tyres. Other applications include adhesives, road surfaces and computer casing.
- Shell has a strong heritage in petrochemical processing technologies which continues with the SEPC project. The new units incorporate a number of technological advances, including Shell’s OMEGA (Only MEG Advantaged) 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 is produced.
- More than 15,000 workers from 20 countries were involved in SEPC’s construction phase. The project recorded nearly 38 million man-hours without serious injury, which represents a worldclass safety performance. The achievement demonstrates Shell’s excellence in project execution and the priority Shell and its contractors place on safety.
- SEPC is Shell’s second major petrochemicals project in Asia in four years. In 2006 CNOOC and Shell Petrochemicals Company Limited (CSPCL) started up the 2.3m tonnes per annum 'Nanhai' 50/50 joint venture complex in Guangdong province, China.
For further information, please contact:
Shell Media Relations
Tel:+31 70 377 3600
Tel: +65 6384 8943 / +65 9764 0193
Shell Investor Relations
Tel: +31 70 377 3996 / +44 207 934 3856
Tel: +1 713 241 1019
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, 2009 (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, 4 May 2010.
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.