Stalled Jurong project may get back on track

In a bid to get its stalled US$2.4 billion petrochemical project on Jurong Island back on track during the first half of the year, Jurong Aromatics Corp. (JAC) has initiated talks with Singapore’s Economic Development Board (EDB) and hopes to dip into one of the agency’s business incentive schemes. EDB said it is prepared to help out in the financing of the company’s capital expenditure “provided the projects remain good and viable”. The JAC consortium had planned to start building its 1.5 million tons per year aromatics complex by the end of 2008, but announced in October that it had hit financing delays due to the global economic slowdown. JAC Director Ewe Ee Foong said, however, that JAC remains committed to the project. The consortium is composed of Jurong Energy Corp., which holds a 60% stake, Swiss oil trader Glencore International AG, with a 40% share, South Korea’s SK Energy and Kuwait’s Ikarus Petroleum Industries Co., each with a 10% share, and Jiangsu Sanfangxiang Industrial Group Corp. and EDB International, with a 5% stake each. (January 22, 2009)