Singapore Refining Invests $500 Million to Extend Quality Product Capacity

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Singapore's plans to solidify its position as a major global energy hub will be boosted by a $500 million investment in new facilities on Jurong Island.

Singapore Refining Company (SRC) will install a 26,000-barrel-per-day (BBL/d) gasoline desulphurization unit, an amine treating unit, a 32,300-BBL/d heavy naphtha splitter, and cogeneration units, with a total power output of 72 megawatts (MW). These developments will assist SRC in producing transportation fuels to meet higher gasoline-quality specifications in the region and generate its own electrical power supply, said a company spokesman.

James Er, the chief executive of SRC, said the construction of the facilities will involve about 2,000 engineers and construction personnel. Construction will begin this month, and the facilities are scheduled to be commissioned in the first half of 2017.

Currently, SRC operates a 290,000-BBL/d refinery. The company is a 50:50 joint venture between Chevron Corporation (NYSE:CVX) (San Ramon, California) and Singapore Petroleum Company (SPC), which is a subsidiary of PetroChina Company Limited (NYSE:PTR) (Beijing, China).

Transport and storage services are expected to benefit from the new project, as business volumes will increase. There should be stronger volume in the wholesale trade, as a significant amount of the products are exported or re-exported.

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