Chemical Plant Shutdown
The Jurong Aromatics Corporation (JAC) in Singapore, which major shareholder is the SK Group, is altering its facilities in view of the recent drop in oil prices. The JAC uses condensate to produce 800,000 tons of paraxylene, 450,000 tons of benzene, 650,000 tons of mixed naphtha, and 280,000 tons of LNG a year.
Condensate is a volatile liquid hydrocarbon obtained from natural gas. It contains a large quantity of naphtha, which is used to make various petrochemical products, and is much cheaper than crude oil. However, the price advantage of condensate has decreased since last year due to plummeting oil prices, and the JAC is now changing its facilities so as to use naphtha as well as condensate.
“Allowing for the changes in market conditions as of late, we halted the operation late last year so that full-range naphtha can be used in the complex,” the SK Group explained, adding, “The complex will be put back into operation in March.”
The JAC is located in the western region of Jurong Island. It started operations in September last year after US$2.44 billion was invested. SK Chemicals, SK Engineering & Construction and SK Gas own 30 percent of shares.