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  Straits Times Forum 29 Oct 07
Industry must abide by strict rules on pollution
Thong Pao-Yi (Ms) Executive Director, Communications Economic Development Board

Straits Times Forum 29 Oct 07
Chemical industry proactive on environment
Terence Koh Executive Director Singapore Chemical Industry Council

Straits Times Forum 26 Oct 07
Smell unpleasant but not harmful
Reply from Tan Quee Hong Acting Director Pollution Control Department
National Environment Agency

Straits Times Forum 24 Oct 07
Pungent stench, cocoa smell: Safe to breathe?
Letter from Michael Eng Wee Chong

Straits Times Forum 23 Oct 07
S'pore's ethylene push raises green concerns
Letter from Prof Anthony Reid

Business Times 19 Oct 07
Another mega investment rolls into Jurong Island
By Ronnie Lim

Straits Times 19 Oct 07
US$2b petrochemical plant to be built on Jurong Island
By Nicholas Fang

A GIANT new US$2 billion (S$2.9 billion) petrochemical plant is to be built on Jurong Island in a boost to Singapore's efforts to cement its place as a major energy and petrochemical hub.

The plant will produce chemicals for the textile and plastics industries when it is up and running by 2011. It is being built by a consortium led by local firm Jurong Aromatics Corp (JAC).

The consortium did not state how many jobs will be created as the exact details are still being finalised.

This is the latest in a string of coups for Jurong Island. Just last month, United States energy giant Exxon-Mobil gave the nod for its second multi-billion dollar petrochemical complex.

Earlier this year, rival Shell also broke ground on its US$3 billion 'cracker' complex, a type of plant producing chemicals, also on Jurong Island.

These two projects take Singapore's total number of crackers to five, making 4.1 million tonnes of ethylene a year. This gives Singapore more than half the capacity of Japan, a major Asian petrochemicals player.

About 60 per cent of JAC is held by the Jurong Energy Corp (JEC), which is majority backed by founders of privately held Vinmar Group - a Houston-based firm that trades and distributes petrochemicals - and the Continental Chemical group of companies which is based in South-east Asia.

Other partners include Swiss-based oil and commodity trading house Glencore, South Korean refiner SK Energy, China polyester producer Jiangsu Sanfang- xiang Industrial Group Corp, and Kuwait investment firm Noor Financial Investment Company.

The Economic Development Board (EDB) has been working to position Jurong Island as the location of choice for such projects amid fierce competition from other locations in China and the Middle East.

Said Mr Julian Ho, EDB executive director for energy, chemicals and engineering services: 'JAC's presence will certainly add to the vibrancy of the ecosystem of companies on Jurong Island, as well as allow for further opportunities for downstream integration.'

JAC director Ewe Ee Foong said Jurong Island had been chosen for its excellent security, top-notch infrastructure and ability to integrate existing and new facilities.

Products from the new plant could be stored in a giant underground oil storage terminal to be built under Jurong Island starting next month.

JTC Corporation's specialised parks development group director, Mr Heah Soon Pah, said: 'A key advantage to the JAC project is the use of the Jurong Rock Cavern to help meet its storage requirements.'

The project will begin construction next year and is slated for completion by 2011.

The plant will use natural gas and condensate as a feedstock and will have an annual output of 2.5 million tonnes of petroleum products and 1.5 million tonnes of aromatics, JAC said in statement yesterday.

JAC said that the plant would largely provide raw materials to textile and plastics manufacturers.

Business Times 19 Oct 07
Another mega investment rolls into Jurong Island
By RONNIE LIM

(SINGAPORE) Singapore has landed yet another mega US$2 billion petrochemical plant investment - this time from a group led by two Asian businessmen with interests in the US and Asia, and involving other South Korean, Chinese, Kuwaiti and Western investors.

Their Jurong Aromatics Corporation (JAC) consortium will start construction early next year on a world-scale aromatics complex of 1.5 million tonnes capacity on Jurong Island. The facility will produce petrochemicals like benzene and xylene which are used in making end-products including detergents and insecticides.

'What is significant in the JAC project is that the feedstock supply has been fully locked in and the products fully subscribed,' said JAC director Ewe Ee Foong, who added that construction of the facility will start next year.

The JAC investment comes on the heels of two other major petrochemical investments on Jurong Island. Shell started building its US$3 billion cracker in March, while ExxonMobil will break ground next month on its project, said to cost over US$5 billion.

The JAC complex, which is expected to be completed by 2011, will import natural gas condensates as feedstock. Industry sources told BT that JAC will build a front-end condensate splitter to refine the condensate feedstock for the complex's use.

JAC will also be one of the first committed customers for the $700 million Jurong Rock Cavern under construction, as the group will use the underground oil and chemical caverns for storage, a JTC Corporation official said.

The main shareholder in JAC - with a 60 per cent stake - is Jurong Energy Corporation, a group led by Vijay Goradia and MY Ling, both founding shareholders of the Continental Chemical group of companies. Jurong Energy's other shareholders include US and European investors.

The remainder 40 per cent stake in JAC - the exact shareholding is still being finalised, a spokesman said - is held by several strategic investors.

They include European trader Glencore, one of the world's biggest energy traders; SK Energy, South Korea's largest oil refiner; Kuwaiti investment company Noor Financial Investment Company, and Jiangsu Sanfangxiang Industrial Group, China's largest polyester producer.

Welcoming JAC's investment, Julian Ho, the Economic Development Board's executive director for Energy, Chemicals & Engineering Services, said: 'JAC's presence will certainly add to the vibrancy of the ecosystem of companies on Jurong Island as well as allow for further opportunities for downstream integration.'

Petrochemical Corporation of Singapore's deputy managing director Stan Park, when contacted by BT yesterday, said that PCS is interested for instance in buying some light naphtha from JAC to use as feedstock for its two crackers.

The complex will produce 800,000 tonnes of paraxylene, 200,000 tonnes of ortho-xylene and 450,000 tonnes of benzene as well as about 2.5 million tonnes of petroleum products (including jet fuel and kerosene).

The consortium has awarded a lump sum turnkey construction contract to SK Engineering and Construction, while the technology for the aromatics complex will come from UOP, a Honeywell company.

Straits Times Forum 23 Oct 07
S'pore's ethylene push raises green concerns
Letter from Prof Anthony Reid

READERS would have been impressed to read the report, 'US$2b petrochemical plant to be built on Jurong Island' (ST, Oct 19), about a consortium led by Jurong Aromatics Corp building an additional petrochemical plant, boosting Singapore's production of ethylene.

However, they would have been more interested to know what the effects of the rapid escalation of production at Jurong and Bukom will be on their lives. Those of us who live in the many housing developments close to these islands are already aware of the effects on sensitive eyes and throats of the chemical emissions.

The success of the EDB in bringing these giant petrochemical projects to Jurong is indeed extremely impressive. In a statement of Oct 1, the board announced its goal of pushing the ethylene production of Singapore yet higher, to six million tonnes a year, even though it already has half the capacity of such industrial giants as Japan and Germany.

As a small, vulnerable and densely-populated island, Singapore needs such enterprise. However, it also needs a public that is vigilant and well-informed on environmental matters.

Singapore's environmental standards are high, especially by regional standards, but petrochemical industries in such close proximity to four million people need to set an environmental standard for the world.

The high-temperature cracking of ethane into ethylene is energy-intensive and will add to Singapore's already-very-high output of greenhouse gases. Readers need to know the trade-off between these long-term factors and the economic gains.

Straits Times Forum 24 Oct 07
Pungent stench, cocoa smell: Safe to breathe?
Letter from Michael Eng Wee Chong

A PUNGENT sweet-smelling stench was in the air when I picked up my kids from my in-laws' place in Clementi at 6.30pm on Monday.

The stench was still in the air when I reached my Bukit Batok home at 8pm.

By then, I was feeling nauseous and had to close the windows.

The wind carrying the stench was blowing from the southern direction, where Singapore's petrochemical plants are located.

A light shower at 10pm finally got rid of the stench.

At midnight, after the rain, there came a cocoa smell that people living in the west are very familiar with.

Is the air quality in Singapore monitored, especially in the west?

How safe is the air that Singaporeans breathe?

Straits Times Forum 26 Oct 07
Smell unpleasant but not harmful
Reply from Tan Quee Hong Acting Director Pollution Control Department
National Environment Agency

I REFER to Mr Michael Eng Wee Chong's letter, 'Pungent stench, cocoa smell: Safe to breathe?' (ST, Oct 24).

The National Environment Agency (NEA) investigated into the cause of the smell after the public called NEA to complain of the nuisance on Monday.

Our investigations showed that the pungent sweet-smelling stench and the cocoa smell which Mr Eng perceived that day originated from a factory manufacturing food flavours. The food-flavour smell may be unpleasant but it is safe and not harmful to health. The smell was caused by a malfunction in the odour-control equipment. We have instructed the factory to rectify the problem.

We would like to assure Mr Eng that our air-quality monitoring shows that the air quality in all parts of Singapore, including the west, is within international standards.

Straits Times 29 Oct 07
Industry must abide by strict rules on pollution
Thong Pao-Yi (Ms) Executive Director, Communications Economic Development Board

WE REFER to the letter, 'Singapore's ethylene push raises green concerns' (ST, Oct 23).

We thank Professor Anthony Reid for his feedback. In the 1960s, when the Government drew up the blueprint for industrialisation, we were well aware of the importance of balancing economic development with environmental protection. That has not changed and we assure the public that we continue to subscribe to this emphasis on sustainable development and ensure it with strict environmental standards.

Heavier industries are located in industrial zones like Jurong Island and Tuas, situated well away from population centres. We have also put in place a process in which the EDB and NEA work closely with the investor from early planning of a project to implementation, to ensure that any industrial facilities set up here, including oil and chemical plants, will meet stipulated safety regulations and standards. These standards are rigorously enforced and updated.

To minimise the emission of greenhouse gases from more energy-intensive industries, we have developed several programmes, including an incentive scheme known as Energy Efficiency Improvement Assistance Scheme or EASe, to encourage companies to conduct energy appraisal that will improve energy efficiency of their buildings or facilities. Being energy-efficient is good for the environment, and good for businesses. It is this combination of planning, high and current regulatory standards, effective enforcement and an effective government-industry partnership that will help us achieve sustainable development in the long run.

We would also like to assure Prof Reid and the public that our air quality monitoring shows that the air quality in all parts of Singapore, including the west, is safe and within international standards. It is our mission to provide a quality living environment for people as this will support the national aim to make Singapore a vibrant, attractive city in which to live, work, learn and play.

Straits Times Forum 29 Oct 07
Chemical industry proactive on environment
Terence Koh Executive Director Singapore Chemical Industry Council

I WRITE in response to the letter, 'Singapore's ethylene push raises green concerns' by Professor Anthony Reid (ST, Oct 23).

The Singapore chemical cluster has experienced robust growth over the past decade and without doubt, this industry has become a strong pillar of the national economy.

In line with the investment and expansion plans Singapore has embarked on these past years, both the national authorities and the industry have taken on a proactive role in managing the environment, health, safety and security (EHSS) aspects of business operations. In addition, today's chemical plant investments are designed to the highest standards with the prevailing technologies available to safeguard those working there. Apart from local regulatory compliance, many chemical plants from America, Europe and Japan use international standards and guidelines to manage their operations.

Singapore's success in attracting more foreign investment in this sector depends very much on social stability and security, stringent chemical control and workplace legislation, and strong and proactive industry involvement in managing the sustainability of our business by implementing good EHSS initiatives. The other important consideration is that the bulk of the island's chemical investment is sited off the mainland.

The Singapore Chemical Industry Council (SCIC) promotes the Responsible Care programme which is advocated by most industry members. This voluntary programme initiated by the industry emphasises continuous improvement in EHSS, shares good practices, communicates risk down the value chain and creates awareness of industry activities to stakeholders. We have reached out to more than 10,000 students via educational outreach efforts to schools and through ChemGallery and site visits.

Another proactive initiative under the Responsible Care programme is the emergency response exercise conducted by chemical companies and involving all concerned agencies, neighbouring companies and grassroots leaders. Since 2001, SCIC has presented outstanding practitioners with the Responsible Care awards. Each year, industry members compete seriously for this achievement which is now well recognised and supported.

The chemical industry also works closely with regulatory bodies to ensure that business is not operated at the expense of EHSS. We will continue our drive towards sustainable development and preserve our environmental and ecological position.


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