ExxonMobil Corp said its Singapore affiliate has agreed to buy Jurong Aromatics (JAC) aromatics plant located on Jurong Island in Singapore.
The plant, one of the largest in the world with an annual production capacity of 1.4 million tonnes, presents operational and logistical synergies for ExxonMobil’s integrated refining and petrochemical complex nearby. The company expects to complete the transaction in the second half of 2017.
“As a leading global manufacturer of aromatics, the addition of this aromatics plant to our existing operations in Singapore will help us better serve our customers in key Asian growth markets. We continue to make strategic investments to ensure ExxonMobil is well positioned to meet increasing global demand for chemical products,” said Matthew Aguiar, senior vice president of basic chemicals, intermediates and synthetics for ExxonMobil Chemical Company.
Acquisition of the Jurong aromatics plant will increase ExxonMobil’s Singapore aromatics production to over 3.5 million tonnes per year, of which 1.8 million tonnes is paraxylene.
“Our growth in Singapore is driven by the expected increase in global demand for chemical products over the next decade of nearly 45 per cent, or about 4 per cent per year, which is a faster pace than energy demand and economic growth,” said Neil Chapman, president of ExxonMobil Chemical Company.
Singapore’s integrated petrochemical complex will see the phased start-up of new 230,000 tonne-per-year specialty polymers facilities.