THE WALL STREET JOURNAL: Shell To Launch New Cracker, Petchem Projs In Singapore: “Royal Dutch/Shell Group (RD) said Tuesday it is going ahead with its planned new ethylene cracker and petrochemical derivatives projects on Bukom Island, Singapore.” (ShellNews.net) Posted 14 Dec 04

DOW JONES NEWSWIRES

SINGAPORE -- Royal Dutch/Shell Group (RD) said Tuesday it is going ahead with its planned new ethylene cracker and petrochemical derivatives projects on Bukom Island, Singapore.

The projects comprise modifications and additions to its Bukom refinery owned by Shell Eastern Petroleum Ltd. and the construction of a 1-million-metric-ton-a-year ethylene cracker and its first mono-ethylene glycol plant on Bukom Island, the company said in a statement. The statement didn't elaborate on the refinery project.

The projects, which have been discussed for some time, are estimated by Shell to cost at least US$1 billion.

Construction is expected to begin in 2006 and start-up is targeted for the first half of 2009, the statement said, without elaborating.

Shell Petrochemical Corporation of Singapore - a 50:50 joint venture between Shell Chemicals and a Japanese consortium led by Sumitomo Chemical Co. (4005.TO) - operates two other ethylene crackers in Singapore with a combined capacity of 1.4 million tons a year of ethylene.

-By Nurul Darni, Dow Jones Newswires; 65-6415-4064; nurul.darni@dowjones.com

-Edited by George Bernard