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Royal Dutch Shell Plans to Restart Ethylene Cracker Unit in Singapore

Royal Dutch Shell plc is expected to restart the operations of its ethylene cracker plant at Pulau Bukom, Singapore

Singapore: Royal Dutch Shell plc, a Netherland based multinational oil and gas company, has announced its plans to put its Ethylene Cracker Complex (ECC), located at Pulau Bukom, back into operations after an unplanned shutdown of the plant on September 27, 2016. The emergency shutdown was done to repair a compressor in cracker plant. Thus, on September 29, 2016 the company declared a force majeure on its competency to offer base chemicals to its customers. Company’s petrochemicals complex consists of a steam cracker, with an ethylene production capacity of 960,000 mt/year, propylene production capacity of 540,000 mt/year and butadiene production capacity of 186,000 mt/year. The declined supply of chemicals due to a long shutdown of the plant had caused other chemicals derivate manufacturers to increase their production capacities.  

TechSci Research depicts that restart of the petrochemicals plant of Shell for production of ethylene would cater to the unmet demand for ethylene in the country. This facility would contribute to the growing demand for ethylene and its various derivates across various end user industries in the world.

According to a recent report published by TechSci Research, “Global Ethylene Market By End Use, By Region, Competition Forecast and Opportunities, 2011 - 2025”, the global ethylene market is expected to grow at a CAGR of around 11.26% during 2016-2025, on the back of growing demands for flexible packaging materials, disposable items and expanding real estate & construction sector, globally. Increasing awareness among people about package labelling and its advantages, along with production of light weight automobiles and expanding infrastructure sector in developing countries is expected to result in augmented demand for ethylene and its derivatives. Global ethylene market is controlled by three major players, namely – SABIC, The Dow Chemical Company and Exxon Mobil Corporation.

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