Jurong Aromatics Project Delayed, Seeks Singapore Govt Aid
By Terence Teo
SINGAPORE (ICIS News)--Jurong Aromatics Corp (JAC) hopes to get financial support from the Singapore government to push through with its US$2.4bn petrochemicals project, which is facing delays of about two years due to tight access to commercial credit, a company spokesman said on Friday.
“We are in discussion with government agencies to assist in funding plans. Though financing hurdles are higher now, we believe that these are still achievable,” said David Chia, spokesperson for JAC.
The project in the city-state’s petrochemical hub of Jurong Island is expected to produce about 1.5m tonnes of aromatics products, including benzene, orthoxylene and paraxylene and 2.5m tonnes of petroleum products such as jet fuel and kerosene.
JAC has approached the state-linked planning agency Economic Development Board of Singapore (EDB) to help out, he added.
“Our position has always been that it is important that JAC seeks financial closure and EDB will continue to facilitate the project in terms of its feasibility in Singapore,” said Cai Pei Juan, spokeswoman for EDB.
To cut construction costs, JAC is considering outsourcing infrastructure support for the project, other than utilities, Chia said.
Construction had originally been scheduled to start late last year, but has yet to commence, he said.
“The project was never stopped and JAC is determined to fully develop the project,” said Chia, but admitted that the targeted completion will have to be pushed back from its original schedule of 2011.
“The project should commence late 2009 or early 2010 and with the three-year stipulated construction period, the project should complete and coincide with the industry’s upturn in early 2013,” Chia added.
JAC intends to build a condensate splitter which will produce 200,000 tonnes/year of orthoxylene, 450,000 tonnes/year of benzene and 800,000 tonnes/year of paraxylene. The project is majority controlled by Jurong Energy Corp, which is backed by international entrepreneurs and investors which include Glencore, SK Energy, Noor Financial Investment and Jiangsu Sanfangxiang Industrial Group, the company said.
SINGAPORE (ICIS News)--Jurong Aromatics Corp (JAC) hopes to get financial support from the Singapore government to push through with its US$2.4bn petrochemicals project, which is facing delays of about two years due to tight access to commercial credit, a company spokesman said on Friday.
“We are in discussion with government agencies to assist in funding plans. Though financing hurdles are higher now, we believe that these are still achievable,” said David Chia, spokesperson for JAC.
The project in the city-state’s petrochemical hub of Jurong Island is expected to produce about 1.5m tonnes of aromatics products, including benzene, orthoxylene and paraxylene and 2.5m tonnes of petroleum products such as jet fuel and kerosene.
JAC has approached the state-linked planning agency Economic Development Board of Singapore (EDB) to help out, he added.
“Our position has always been that it is important that JAC seeks financial closure and EDB will continue to facilitate the project in terms of its feasibility in Singapore,” said Cai Pei Juan, spokeswoman for EDB.
To cut construction costs, JAC is considering outsourcing infrastructure support for the project, other than utilities, Chia said.
Construction had originally been scheduled to start late last year, but has yet to commence, he said.
“The project was never stopped and JAC is determined to fully develop the project,” said Chia, but admitted that the targeted completion will have to be pushed back from its original schedule of 2011.
“The project should commence late 2009 or early 2010 and with the three-year stipulated construction period, the project should complete and coincide with the industry’s upturn in early 2013,” Chia added.
JAC intends to build a condensate splitter which will produce 200,000 tonnes/year of orthoxylene, 450,000 tonnes/year of benzene and 800,000 tonnes/year of paraxylene. The project is majority controlled by Jurong Energy Corp, which is backed by international entrepreneurs and investors which include Glencore, SK Energy, Noor Financial Investment and Jiangsu Sanfangxiang Industrial Group, the company said.
source: www.icis.com
