More refinery expansions to come on Jurong Island

MORE refinery expansion and upgrading investments can be expected at the Chawan/Merlimau sectors of Jurong Island where ExxonMobil’s 605,000 barrels per day (bpd) and Singapore Refining Company’s (SRC) 290,000 bpd refineries are located, industry sources say. Soil investigation work usually precedes reclamation, which takes about one-and-a-half to two years, contracting sources said of JTC’s usual land preparation to meet investors’ needs. SRC – which has apparently indicated to JTC its interest in more land there – will want it for expected new projects, especially with the financial muscle which its new incoming partner Chinese oil giant PetroChina will bring to the joint venture refinery with Chevron. SRC, which will shortly be starting up its just-revamped hydrosulphuriser – a US$81 million project to produce ultra-low sulphur diesel – is carrying out front-end design on its next upgrading investment to produce ultra-low sulphur gasoline (ULSG). ‘What is certain is that PetroChina can further grow SPC, which is something KepCorp realises it cannot do, unless it is prepared to invest much more in the SRC refinery,’ an industry source earlier said of KepCorp’s move to sell its entire 45.51 per cent stake in SPC to PetroChina. (June 17, 2009)