Exxon Mobil buys Singapore petrochemical plant, boosts output in Asia

Exxon Mobil to buy a refining and petrochemical plant in Singapore for reported $1.7 bn

Exxon Mobil to buy a refining and petrochemical plant in Singapore for reported $1.7 bn

About ExxonMobil Chemical CompanyExxonMobil Chemical Company is one of the largest petrochemical companies worldwide.

The plant which will be bought by ExxonMobil's Singapore affiliate has a production capacity of 1.4 million tonnes per annum and is located on Jurong Island.

U.S. energy giant ExxonMobil Corp today struck a deal to buy a refining and petrochemical plant in Singapore from Jurong Aromatics (JAC) in order to boost its fuel and chemical production in Asia.

The acquisition is expected to bring in operational and logistical synergies for the nearby integrated refining and petrochemical complex of ExxonMobil. The complex which houses two world-scale steam crackers is capable of processing 592,000 barrels of crude oil per day.

"Our growth in Singapore is driven by the expected increase in global demand for chemical products over the next decade of almost 45%, or about 4% per year, which is a faster pace than energy demand and economic growth", Neil Chapman, president of ExxonMobil Chemical, said in the firm's release. "Our growth in Singapore is driven by the expected increase in global demand for chemical products over the next decade of almost 45 percent, or about 4 percent per year, which is a faster pace than energy demand and economic growth", said Neil Chapman, president of ExxonMobil Chemical Company.

Number of years ExxonMobil has operated in Singapore.

JAC's condensate splitter and petrochemical units - at a construction cost of $2.4 billion - started operations in Asia in 2014 to produce paraxylene to meet demand from textile and bottle manufacturers in China.

The addition to ExxonMobil's operations here will also help the company better serve its customers in key Asian growth markets, said Mr Matthew Aguiar, senior vice-president of basic chemicals, intermediates and synthetics for ExxonMobil Chemical Company.

The transaction is expected to go through in the second half of 2017.

Last month, ExxonMobil Chemical and Sabic had announced to build a new petrochemical project with a multibillion dollar investment in Texas, US in the San Patricio County.