Construction of two mega petrochemical crackers at Singapore's Jurong Island is on track. One is by Shell at an investment of US$3 bln and is scheduled for completion in late 2009/early 2010. The other is by ExxonMobil at an investment of over US$5 bln, completion for which is expected by Q1-2011.
However, this will not translate into new business for utility companies. ExxonMobil is building a 220 MW cogeneration plant, its second after an earlier 150 MW unit, to meet all of its in-house needs. Likewise, Shell has sufficient in-house cogeneration capacity to meet its needs.
However, other projects due onstream in Jurong face delays.
Lanxess has delayed it's planned S$828 million plant to produce synthetic rubber for tyre inner-tubes and liners was aimed at the Chinese market. Jurong Aromatics Corporation has delayed its US$2.4 billion (RM8.4 billion) petrochemical investment due to financing issues.
Tuas Power has delayed plans for a S$2 billion (RM4.4 bln) clean coal/biomass cogeneration plant by six-12 months as potential customers like Germany's Lanxess put off new projects for up to a year. The company, which announced its new cogeneration plant on Jurong Island last September, has been negotiating with contractors but has not awarded any tenders. Sembcorp is also reported to have offset its plan to build a second cogeneration plant on Jurong Island, planned using innovative alternative refuse-derived fuel and heavier fuel oil. Singapore Petroleum Company (SPC) also plans to postpone its 'green' gasoline project and a planned 60-70 MW cogeneration plant because of the downturn.