THE WALL STREET JOURNAL: ExxonMobil: Singapore Naphtha Cracker Study Progressing: “In December last year, Royal Dutch/Shell Group (RD) announced plans to build a $1 billion naphtha cracker in Singapore with a targeted startup date in 2009. Shell is planning to build a unit with a capacity of 600,000 to 900,000 tons/year, together with the Singapore Economic Development Board.” (ShellNews.net) 26 April 05

DOW JONES NEWSWIRES

SINGAPORE -- Exxon Mobil Corp. (XOM) said Monday it is making headway in its feasibility study on building a second petrochemical plant in Singapore.

"The feasibility study for a second steam-cracking train in Singapore is being progressed," an Exxon Mobil spokeswoman said. "The new world-scale train would be located at and integrated with the existing ExxonMobil Singapore complex and would include derivative units."

A steam cracker is a petrochemical plant that turns naphtha and light hydrocarbons into ethylene, propylene, and other chemical raw materials.

The spokeswoman declined to elaborate on the investment involved in building the second petrochemical plant or when a final decision will be made.

"Several factors need to be considered" before a final decision will be made, she said.

ExxonMobil currently operates a naphtha cracker with a capacity of 800,000 tons a year, and the company is debottlenecking the facility to increase output to 900,000 tons/year.

In December last year, Royal Dutch/Shell Group (RD) announced plans to build a $1 billion naphtha cracker in Singapore with a targeted startup date in 2009.

Shell is planning to build a unit with a capacity of 600,000 to 900,000 tons/year, together with the Singapore Economic Development Board.

Asia's demand for petrochemicals is expected to climb steadily in the years to come, with China accounting for a large portion of the incremental demand.

-By Calvin Lee, Dow Jones Newswires; 65-6415-4063; calvin.lee@dowjones.com

-Edited by Nick vonKlock and George Bernard

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