ExxonMobil lets contract for expansion of Singapore petrochemical complex
ExxonMobil Corp. has let a long-term contract to Linde PLC to provide gasification to support the latest multibillion-dollar expansion to convert fuel oil and other bottom-of-the-barrel crude products into higher-value lube base stocks and distillates at subsidiary ExxonMobil Asia Pacific Pte. Ltd.’s integrated manufacturing complex in Singapore, which has a crude oil processing capacity of 592,000 b/d and includes two steam crackers (OGJ Online, Apr. 2, 2019).
As part of the agreement—which will be the single-largest sale of gas contract in the history of the newly merged Linde and of its legacy companies—Linde will invest $1.4 billion to expand its existing gasification complex at Jurong Island, integrating it with ExxonMobil’s project to produce and supply additional hydrogen and synthesis gas, Linde said.
The project will include building and operating four additional gasifiers, a 1,200-tonne/day air separation plant, as well as Linde’s proprietary downstream gas processing units and sulfur recovery plants.
Once completed, Linde’s gasification complex will produce and supply hydrogen and synthesis gas to ExxonMobil by upgrading the heavy residue feedstock from its new installations.
Linde also will invest in a dedicated set of pipelines for the transfer of feedstocks and products between ExxonMobil and Linde facilities.
Upon completion, Linde’s expanded operations will also supply hydrogen, carbon monoxide, and synthesis gas to other customers on Jurong Island, quadrupling Linde’s current capacity.
Linde, which will design and build the new installation, said it expects to begin construction during this year’s second half for anticipated start-up in 2023.
ExxonMobil previously let a contract to Tecnicas Reunidas SA to deliver engineering, procurement, and construction activities on the project, as well as a contract to John Wood Group PLC to provide EPC services interconnecting pipelines and supporting infrastructure installations for the expansion.
With Tecnicas Reunidas already undertaking its EPC activities on the expansion, ExxonMobil said it expects the project to be completed and ready for startup in 2023.
This project represents the latest in a series of recent investments in global base stock production by ExxonMobil, including a 2015 expansion of the Singapore complex as well as startup of an enhanced hydrocracking unit in 2018 at subsidiary Esso Nederland BV’s 191,000-b/d refinery in Rotterdam (OGJ Online, Oct. 31, 2018).
Robert Brelsford | Downstream Editor
Robert Brelsford joined Oil & Gas Journal in October 2013 as downstream technology editor after 8 years as a crude oil price and news reporter on spot crude transactions at the US Gulf Coast, West Coast, Canadian, and Latin American markets. He holds a BA (2000) in English from Rice University and an MS (2003) in education and social policy from Northwestern University.
