South Korean chemicals maker SK Global Chemical Co. is to begin construction of a $2.4 billion petrochemical plant on Singapore's Jurong Island.
The new facility is intended to serve as SK Global Chemical Co.'s production base in Southeast Asia as well as China's booming market for refined petrochemical products.
SK Global Chemical said that the new petrochemical plant will produce 4 million tons of petrochemicals per year, with 2.6 million tons of output consisting of refined oil products including civilian Jet A-1 aircraft jet fuel and liquefied petroleum gas, with the remaining production of 1.4 million tons including chemicals such as paraxylene and benzene, South Korea's Yonhap news agency reported.
The facility is schedule to come online in late 2014, according to SK Global Chemical.
SK Global Chemical partnered with SK Gas and SK Engineering and Construction Co. to establish the joint venture to construct the Jurong Island facility and holds a 30 percent share in Jurong Aromatics Corp. Pte. (JAC), overseeing the project.
SK Engineering and Construction Co. also signed a $950 million contract with JAC to build the Jurong Island complex as well as agreeing with JAC to transfer the relevant technology to operate the facility.
By. Charles Kennedy, Deputy Editor OilPrice.com
Charles is a writer for Oilprice.com More