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Shell invests in new tanks on Jurong Island

The Business Times by TAN HWEE HWEE


SHELL is investing in new storage capacity for output from its giant petrochemical complex on Jurong Island.

The supermajor has penned an agreement with privately owned Oiltanking Singapore Chemical Storage (OTSC) for the lease on two more propylene storage tanks on Jurong Island.

OTSC is an independent storage provider that handles petrochemical products and runs a terminal on Jurong Island. The agreement with Shell called on OTSC to construct the two new tanks, which will incorporate additional pumps and ancillary equipment, allowing integration with existing propylene logistics facilities.

Propylene is used to produce chemical intermediates that go into a wide variety of everyday products such as foams, containers, paints and coatings. Shell produces propylene in its Pulau Bukom integrated refinery and petrochemicals hub, and transports it to Jurong Island by subsea pipelines.

Shell Chemicals Asia-Pacific's vice-president Dennis Cheong said this latest expansion of the supermajor's propylene storage capacity reinforces its commitment in Singapore. "In addition to several capacity investments in recent years both for the Ethylene Cracker Complex on Pulau Bukom as well as in downstream derivatives, we are also constantly looking at logistics enhancements to create a seamless supply chain, greater system flexibility and to improve our customer experience."

Pulau Bukom hosts the largest wholly-owned Shell refinery globally in terms of crude distillation capacity. It is also home to Shell's ethylene cracker complex, which saw its production capacity expand to one million tonnes a year, up from 800,000 tonnes, on a successful upgrading in 2015.