Shell progress on world-scale MEG plant in Singapore

01-06-2006: Shell Eastern Petroleum (Pte) Ltd ("SEPL") has appointed Mitsubishi Chemical Engineering Corporation (MEC) and Foster Wheeler Energy Limited (FWEL) for the basic design engineering package for a 750,000 t/a mono-ethylene glycol (MEG) plant.

The plant, to be located at Singapore Petrochemical Complex, Jurong Island, is expected to begin operations in 2009. It is part of a petrochemical project that is planned as a collaboration between Shell and the Singapore Economic Development Board.

FWEL is likely to provide engineering, procurement and construction management following final investment decision expected later this year.

The new MEG plant will use feedstock from Shell's proposed world-scale ethylene cracker located on neighbouring Bukom Island which is also scheduled for completion in 2009.

Shell has also awarded a separate contract for the basic design engineering packages for the modifications to Shell's Bukom refinery to another Foster Wheeler subsidiary, Foster Wheeler Asia Pacific Ltd. These modifications form a key aspect of the overall project which allows the integration of the ethylene cracker complex to the refinery to capture the benefits of oil-chemicals integration.

Both the cracker and the MEG plant would be part of an overall Singapore investment programme and is in line with Shell's overall strategy of 'more upstream and profitable downstream'. The integrated refining and petrochemicals complex will maximise potential site and location benefits to contribute to the profitability of Shell's downstream business through maximum integration and optimal supply and market logistics.