GuideMeSingapore

Singapore is the best location for petrochemical businesses to capitalize on the regional growth potential. The Singapore advantage was underscored with the successful launch of the multi-billion dollar Shell Eastern Petrochemicals Complex which spans Pulau Bukom and Jurong Island. The project in Singapore has created Shell s largest, fully-integrated refinery and petrochemicals hub. This is regarded as a major milestone in the energy and chemical industry which with $60 billion annually accounts for one third of Singapore s manufacturing output. SEPC comprises a new ethylene cracker and a butadiene extraction unit on Bukom, and a mono ethylene glycol plant on Jurong Island.

Experts opine that the Shell Eastern Petrochemicals Complex (SEPC) could help to attract some $2 billion in fixed asset investments from leading global chemical firms. The facility will bring in a wave of high value downstream investments in the chemical industry. The Asian petrochemical demand grows at the rate of 4-5% annually. As Asia grows and its demands for construction materials, textiles, packaging materials etc escalates, the demand for petrochemicals will also shoot up. To tap on this opportunity it is essential to be near the market to save costs as well to procure sensibly, for instance, the SEPC equipped with the cracker unit will be able to supply at competitive rates to the regional markets than the Middle East.

The growth of this industry not only benefits the huge direct players but many industry partners along the value chain such as construction & engineering companies, logistics companies, traders etc, where again the major contractors pass on the benefit of growth to the smaller subcontractors. The growth of this industry also highlights the need for environmental sustainability and thus giving rise to the development of clean technologies industry and clean energy companies to combat green house gas emission. Singapore acting as a hub of the industry has been attracting players of all sizes and nature capable of bringing significant value proposition.

Welcoming the launch of the integrated facility Ms. Jacqueline Low, the Director of Singapore company registration agency Janus Corporate Solutions said World class projects and the presence of industry leaders in the island state accentuate the Singapore advantage. The strategic location and government s commitment towards the development of the industry plays a key role in attracting such big projects, which in turn draws opportunities for investment and smaller value adding operators. Many foreign petrochemical traders who intend to capture the growing opportunity in the east prefer to incorporate Singapore companies in order to leverage on the industry ecosystem and infrastructure. QATAR International Petroleum Marketing Company s first international office in Singapore, Russia’s Gazprom and Oman Oil Company s representative office are just notable recent examples, apart from major players there are many traders and intermediaries that have registered Singapore company. Industry specific opportunities available in Singapore and the proximity to regional markets are the major factors that drive the players to incorporate in Singapore.