Businesses of Shell Company

Shell, other than being known for producing styrene monomer, propylene oxide, propylene glycol, polyether polyols, it is also involved in investment programmes to develop its businesses and to enhance the company's profitability.

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During 2004, Shell Eastern Petroleum Ltd (SEPL) announced that it would progress a project to build a world scale ethylene cracker. Downstream plants will include ethylene oxide (EO) and monoethylene glycol (MEG) capacity. Polypropylene and phenol production units are also likely to be included. These plants will be located on Singapore’s Jurong Island.

At the same time SEPL said that it would expand output at its refinery which is located on Singapore’s Bukom Island. This will provide feedstock for the planned ethylene unit, which would also be built on Bukom Island. The ethylene unit will provide feedstock for the planned production facilities on Jurong Island. The project is being developed as collaboration between SEPL and the Singapore Economic Development Board and the planned production plants are scheduled to start up during 2009.

During the final quarter of 2006, SEPL broke ground for its petrochemical complex located at the Pulau Bukom refinery in Pulau Ular, Singapore. The complex, which is known as the Shell Eastern Petrochemical Complex, is due to become operational by the end of 2009 or early 2010.

The refinery on Pulau Bukom Island

1. Ethylene cracker contract

• At the end of 2005 a joint venture between Japan’s Toyo Engineering and ABB Lummus Global of the US announced that it had been awarded a contract to provide the basic design and engineering package (BDEP) for the SEPL ethylene cracker. The cracker will be located on Bukom Island. It is expected that the facility will have a capacity of between 1m and 1.3mtpa

2. Ethylene cracker technology

• The cracker will be based on propriety technology supplied by ABB Lummus Global. It will be integrated in Shell’s existing refinery on Bukom Island

3. Ethylene oxide (EO)/Monoethylene glycol (MEG) contract

• During January 2006 Foster Wheeler Energy, based in the UK, and Japan’s Mitsubishi Chemical Engineering were appointed to provide the basic design engineering package for the monoethylene glycol (MEG) unit. The unit is slated to have a capacity of 750,000tpa. The plant will be located on Singapore’s Jurong Island and is expected to become operational in 2009. Feedstock for the plant will be sourced from the new ethylene cracker

4. Technology for the monoethylene glycol plant

• The new MEG plant will use Shell's OMEGA technology which incorporates Shell's proprietary EO technology for the front-end ethylene oxide unit. Catalytic glycol production technology developed by Mitsubishi Chemical Corporation will allow for production of the final product


• The OMEGA process is said to require less ethylene feedstock per tonne of MEG than existing technologies. Other advantages are said to include lower energy and water consumption

5. Basic engineering for butadiene unit

• During the final quarter of 2006 US-based ABB Lummus Global announced that it had been awarded a contract from SEPL in relation to a 175,000tpa butadiene unit. The contract covers a licence and basic engineering of a grassroots facility. ABB added the SEPL is set to make a final investment decision early in 2007 following completion of basic engineering

6. Butadiene technology

• The butadiene unit will use proprietary technology from ABB Lummus Global/BASF. This technology utilises n-methylpyrrolidone as a solvent which results in high purity butadiene and low operating costs

7. Refinery upgrade contracts

• Foster Wheeler Asia Pacific Ltd was awarded a separate contract for the basic design engineering package to modify and upgrade Shell's Bukom refinery. 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

8. Ethylene implementation contract

• Following the final investment decision, SEPL awarded JV partners ABB Lummus Global and Toyo Engineering Corporation a contract for the implementation phase of the world-scale cracker. The partners will provide engineering, procurement and construction management services for the 800,000tpa ethylene plant

9. Background

• Both the cracker and the MEG plant are part of an overall Singapore investment programme and are in line with Shell's overall strategy to develop its upstream business, enhancing the profitability of its downstream business. The integrated refining and petrochemicals complex will maximise site and location benefits and contribute to the profitability of Shell's downstream business