Singapore: Expansion Project Exxon Mobil Decides on Multi-Billion Dollar Expansion into Higher-Value Lube Base Stocks and Distillates
Exxon Mobil has made a final investment decision on a multi-billion dollar expansion of its integrated manufacturing complex in Singapore to convert fuel oil and other bottom-of-the-barrel crude products into higher-value lube base stocks and distillates.
Irving/USA — The expansion project is part of the company’s plan to further enhance the competitiveness of the Singapore facility, which includes the world’s only steam cracker capable of cracking crude oil. The project, which leverages proprietary technologies, integration and scale, will significantly increase site downstream and chemical earnings potential. Engineering, procurement and construction activities have begun, and startup is anticipated in 2023.
The investment will add 20,000 barrels per day of Exxon Mobil Group II base stocks capacity, which includes EHCTM 50 and EHCTM 120 grades, in addition to a new high-viscosity Group II base stock to meet increasing demand in the Asia-Pacific region.
The project also applies new chemicals technologies and leverages integration across the crude cracker and refining complex to further enhance the competitiveness of crude cracking. The expansion will add the capacity to increase production of cleaner fuels with lower-sulfur content by 48,000 barrels per day, including high-quality Exxon Mobil Marine fuels to enable customers to meet the International Maritime Organization’s 0.50 % sulfur requirement.
The project represents the latest and most significant in a series of the company's recent investments in base stock production. Recent EHCTM Group II base stock investments include a 2015 expansion in Singapore and the startup of a world-scale, enhanced hydrocracker unit in Rotterdam in 2018.
Engineering, procurement and construction contracts have been awarded to Técnicas Reunidas for the new process units, and Wood Group for interconnecting pipelines and supporting infrastructure facilities. As part of the project, the company is working on a long-term commercial agreement with Linde to upgrade residue from the site to hydrogen and synthesis gas.