The rapid growth of Singapores petrochemical industry has been a direct result of the countrys strong base in Petroleum refining. Jurong Island is the center of Singapores expanding Petrochemicals industry. Companies on the island have benefited from lower operating costs through creating synergistic relationships, sharing facilities, integrated utilities, tax incentives, and proximity to important regional markets.

ExxonMobil, which already operates a 25,400 bbl/d (800,000 metric tons/year) ethylene cracker on the island, has plans to build another cracker of comparable size. Petrochemical Corporation of Singapore (PCS), a joint venture between Shell and a Japanese consortium led by Sumitomo Chemical, operates two other ethylene crackers on Jurong, with a total capacity of 44,500 bbl/d (1.4 million metric tons/year). PCS is also slated to bring a 6,400 bbl/d (200,000 metric tons/year) propylene cracker onstream on Jurong Island by year-end 2006. Shell is carrying out a detailed engineering study for a planned steam cracker at Palau Bukom and is expected to reach a final decision on whether or not to build the facility in 2006. The new plant would reportedly produce 28,600 bbl/d (900,000 metric tons/year) of ethylene when it becomes operational in 2009. ExxonMobil Chemical is also evaluating plans to build a second naptha cracker in Singapore, which would reportedly have a 22,500 bbl/d (one million metric tons/year) capacity. Royal Dutch Shell also is moving ahead with a new naphtha cracker for its Jurong Island facility. The new plant is expected to produce 28,600 bbl/d (900,000 metric tons/year) of ethylene when it becomes operational in 2009. Several other firms also plan to build new smaller petrochemical facilities in Singapore or upgrade preexisting facilities in the coming years.