Construction Boxscore Analysis
Jurong Island—Asia’s preemptive LNG trading hub?
From the May 2013 issue of Hydrocarbon Processing
In the South Pacific, the artificial island of Jurong Island is the heart of Singapore’s energy and chemicals industry. It houses over 100 leading global petroleum, petrochemicals and specialty chemicals companies. With a rich history as an oil trading hub, Singapore is on course to become a regional liquefied natural gas (LNG) trading center with the construction of its first LNG terminal.
Developed by Singapore LNG, the Singapore LNG terminal is being constructed on a 30-hectare plot at the Meranti Seafront on Jurong Island. The $1.7-billion (B) facility will be used for importing LNG, reloading and regasifying, and storage. It is the first terminal constructed with bidirectional operations and storage. The new terminal will allow companies to unload LNG cargoes, store them, and then ship them at a later date. It will also aid in the redistribution of LNG supplies to regional destinations that cannot build large import facilities or that have ports too small to handle mega-sized LNG vessels.
The original contract to construct and operate the terminal was assigned to PowerGas in 2007. In 2009, Singapore’s Energy Market Authority (EMA) took over control of the project and created Singapore LNG (SLNG) to continue development. In 2010, SLNG awarded the engineering, procurement and construction (EPC) contract to Samsung C&T. Table 1 lists additional awards.
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Ethylene in evolution: 50 years of changing markets and economics
From the April 2013 issue of Hydrocarbon Processing
Ethylene is the key building block for the petrochemical industry. This olefin supports 70% of petrochemical industry production and is used to manufacture a wide variety of products for industrial and consumer markets. Ethylene is the main feedstock for downstream petrochemicals, including polyethylene, ethylene oxide, ethylene dichloride, ethylbenzene, linear alcohols and vinyl acetate, to name a few. Adhesives, chemicals, coatings, packaging, construction materials, textiles, rubber and plastics are based on this organic olefin.
The strength of the petrochemical market is directly related to the supply and demand for ethylene. Ethylene consumption is consumer product-driven. This fundamental economic concept has dictated the cyclical nature of the ethylene market. When supply exceeds demand, petrochemical profits decline, producers curtail construction plans and capital spending, inefficient plants are permanently shut down or mothballed, and global capacity declines. When demand outpaces supply, companies competitively build and expand production capacity.
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Saudi Arabia’s plan for near-zero-sulfur fuels
From the March 2013 issue of Hydrocarbon Processing
Around the world, legislation mandating decreased emissions and lower levels of airborne pollutants is coming into effect. In response, refiners are implementing operational and processing changes to reduce sulfur levels in transportation fuels.
To comply with mandatory sulfur specifications for gasoline and diesel between 2013 and 2016, the Kingdom of Saudi Arabia plans to spend billions of dollars to construct multiple clean-fuel projects. Saudi Arabia has adopted European standards for fuel quality, as Europe has been the frontrunner on regulations for low-sulfur, “clean” transportation fuels.
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