[Singapore] Shell Pulau Bukom Manufacturing Site

[escveritas]

PULAU BUKOM MANUFACTURING SITE

What was once an oil storage installation over 125 years ago has now become one of the most important production sites in Shell. Today, Pulau Bukom is an integrated oil and petrochemicals site with manufacturing facilities for fuels, lubricant base oils and specialty chemicals.



Shell has been in Singapore for over 1251 years, and it is one of the largest foreign investors in the country. Its long history in Singapore began in Pulau Bukom. Today, the Bukom manufacturing site has developed into one of the most important Shell production sites in the world.

Bukom is the largest wholly-owned Shell refinery globally in terms of crude distillation capacity (500,000 barrels per day). It is also home to a world-class Ethylene Cracker Complex (up to a million tonnes per annum) and a Butadiene Extraction Unit (155,000 tonnes per annum). The site also produces base oils, which is sent to Shell’s Tuas Lubricants Plant. Bitumen produced on Bukom, along with lubricants produced from base oils, are supplied to China and across South East Asia.

With the completion of the Shell Eastern Petrochemicals Complex (SEPC) project in May 2010, Bukom is now an integrated oil and petrochemicals site, with manufacturing facilities for fuels, lubricant base oils and specialty chemicals.
Integrating the refining and petrochemicals assets maximise the economic and efficiency benefits in terms of feedstocks, operations and logistics. Feedstock flexibility helps the site maximise returns as economics shift between hydrocarbon streams, and more importantly, provides greater security of supply for Shell’s customers.

Seeing the need in these times, Shell has since May 2020, diverted resources to produce Isopropyl Alcohol (IPA) at Bukom. IPA is a key ingredient for sanitisers and disinfecting products. Pulau Bukom Manufacturing plant is the only producer of IPA in Singapore and South East Asia, supplying to customers in Asia. Read how IPA can help halt COVID-19 here.

Bukom is situated on a 243-hectare island 5.5 km southwest of Singapore. It forms part of a group of southern islands that have been identified for petrochemical and other industrial manufacturing.

1 Shell’s Pulau Bukom Manufacturing Site is 59 years old as of August 2020

Bukom's Role In The Region

Singapore is Shell’s largest petrochemical production and export centre in the Asia Pacific region. The Pulau Bukom Manufacturing Site is part of Shell Eastern Petroleum (Pte) Ltd (SEPL) and supplies products to the various Shell businesses in Singapore, including:

Retail
Commercial
Chemicals
The Global Oil Products businesses of Marine (bunker fuels), Aviation (jet fuel), lubricants and LPG.

Approximately 90 per cent of Bukom's products are exported to countries in the Asia Pacific region and beyond.

[escveritas]

Shell delays shutdown of base oil plant at Pulau Bukom due to supply concerns

14 July 2022

Shell Singapore, which announced in December 2020 that it will close its Group I base oil plant in Pulau Bukom, said it will extend its operation, “driven by Shell’s intent to safeguard the supply security for its customers in a market environment with increased supply disruption risks.”

The Shell spokesperson added that “The Group II base oil plant is pending final investment decision and we will share more details in due course.”

Group II base oils are more refined than Group I. Group II base oils are produced using a hydrotreating process to replace the traditional solvent-refining process used in producing Group I base oils. The main difference between Group I and Group II base stocks is sulfur content and saturates. Two main characteristics of Group I base oils are that they are composed of less than 90% saturates and/or greater than 0.03% sulfur. Unlike Group I base oils, Group II base oils must contain over 90% saturates and less than 0.03% sulfur. The greater percentage of saturates gives these lubricants better antioxidation properties than Group I base oils. Many finished lubricant formulations have switched from Group I to Group II and III due to the latter’s superior properties and cost competitiveness.

The Shell spokesperson explained further that the Pulau Bukom Manufacturing Site in Singapore is “a strategic hub for Shell’s lubricant operations.”

Its earlier announcement to cease operations of its Group I base oil plant starting July 2022 was driven by “Shell’s intent to enhance the competitiveness of its lubricants business, base oils supply demand balance and the general global decline in Group I base oil demand.”

The Pulau Bukom Group I base oil refinery has a capacity of 360,000 tons per annum. Shell had planned to reduce Pulau Bukom’s fuel refining capacity by half, to 250,000 barrels per day (bpd), as part of its shift to low-carbon fuel alternatives, following its shutdown.

In November 2020, Shell Singapore announced a 10-year plan for how the company could make significant investments in people, assets and capabilities to repurpose its core business and aim to cut its own CO2 emissions here by about a third within a decade.

The announcement builds on Shell’s overarching ambition to be a net-zero emissions energy business by 2050 or sooner, in step with society and with customers.

[escveritas]

Shell to sell interest in Singapore Energy and Chemicals Park to CAPGC

8 May 2024

Singapore − Shell Singapore Pte Ltd, a subsidiary of Shell plc, has reached an agreement to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd. The transaction will transfer all of Shell’s interest in Shell Energy and Chemicals Park Singapore to CAPGC.

“This agreement marks a significant step in Shell’s ongoing efforts to high-grade our Chemicals and Products business, and is a testament to our commitment to deliver more value with less emissions, as outlined at our Capital Markets Day last year.” said Huibert Vigeveno, Shell’s Downstream, Renewable and Energy Solutions Director. “We are proud of our history at Bukom and Jurong Island and our contributions to the economic growth of Singapore in this sector in the past decades. Our commitment to Singapore remains steadfast and its importance as a regional hub for our marketing and trading business remains important. As Singapore continues to decarbonise, Shell looks forward to a continued partnership with the country, and with our customers in the region.”

Shell ran a competitive bid process to reach this milestone. Staff in Shell Energy and Chemicals Park Singapore will continue their employment with CAPGC under the new ownership, providing continuity for staff and contributing to ongoing operational reliability and safety.

Subject to regulatory approval, the transaction is expected to complete by the end of 2024.