South Korea's SK Global Chemical Co. is to commence construction of a US$2.4 bln petrochemical plant on Singapore's Jurong Island, as per oil news.com. Output will comprise 4 million tpa of petrochemicals: 2.6 mln tons of output consisting of refined oil including civilian Jet A-1 aircraft jet fuel and liquefied petroleum gas, and the balance 1.4 mln tons including chemicals such as paraxylene and benzene, as per South Korea's Yonhap. The new facility, to come online in late 2014, is intended to serve as SK Global Chemical Co.'s production base in Southeast Asia as well as China's booming market for refined petrochemical products.
SK Global Chemical partnered with SK Gas and SK Engineering and Construction Co. to establish the joint venture to construct the Jurong Island facility and holds a 30% share in Jurong Aromatics Corp. Pte. (JAC), overseeing the project. SK Engineering and Construction Co. also signed a US$950 mln contract with JAC to build the Jurong Island complex as well as agreeing with JAC to transfer the relevant technology to operate the facility.