Swiss-based commodity trader Glencore, South Korean refiner SK Energy, Kuwaiti investment firm Noor Financial and Chinese polyester producer Jiangsu Sanfangxiang Industrial Group will team up to take a combined 40% stake in a US$2 bln petrochemical plant in Singapore. This investment by trading firms in Singapores' infrastructure is a move to leverage profits. The balance 60% stake will be owned by Jurong Energy Corporation (JEC), backed by the founders of privately held Vinmar Group and Continental Chemical Corp Pte Ltd, a Southeast Asian producer.
The plant, which will use natural gas and condensate as feedstock, will have annual output of 2.5 million tons of petroleum products (roughly 50,000 bpd) of clean fuels, and 1.5 mln tons of aromatics after it is completed in 2011. The petrochemical project in Jurong Island is the latest petrochemical expansion in Singapore, where U.S. major Exxon Mobil Corp has committed to building a second complex by early 2011 and Royal Dutch Shell plans to build an 800,000 tpa ethylene plant by the end of this decade.