Energy giants tie up to build lube park

SINGAPORE - Energy giants Shell, Sinopec and Total have come together to build a shared lubricants park in Tuas - the first of its kind here.

Called Singapore Lube Park and spanning 5ha, it is a joint venture between Shell Eastern Petroleum, Sinopec Lubricant (Singapore) and Total Oil Asia Pacific.

The cost of the project was not disclosed, but the investment is estimated to be at least several hundred million dollars.

The partnership will cover operations of shared facilities, including an import and export jetty, common pipelines, infrastructure and exclusive storage facilities.

These will service their respective new lube oil blending plants and grease manufacturing plants, to be built on separate sites adjacent to the lube park.

Construction is set to start later this year and is expected to be completed by 2015.

"It's a great example of collaboration (between) companies and the Singapore Government to find innovative solutions to optimise the use of resources here," said Mr Dennis Cheong, Shell vice-president for lubricants supply chain.

"This equal collaboration will allow us to exchange technical expertise and standards across the three global organisations with diverse culture and strengths," added Total vice-president (lubricants) Tan Pai Kok.

The three companies have been working closely with the Economic Development Board (EDB) and JTC Corporation on this project.

"This joint initiative... illustrates how Singapore's business environment allows industry leaders to come together and develop new business models," said Mr Eugene Leong, EDB director of energy and chemicals.

When ready, Shell will be moving its Woodlands North lubricants oil blending plant and grease plant to a new 10ha facility in Tuas in 2015.

Its Woodlands plant has been in operation since 1963, and Mr Cheong said the land will be returned to the Government once it moves out.

The relocation will enable the Dutch oil major to raise its annual lubricants production capacity by some 40 per cent to 350,000 tonnes and overcome space constraints faced at its Woodlands plant.

Mr Cheong said the Singapore operations are a vital part of Shell's global lubricants business as it supplies lubricants and greases to more than 30 countries in the Asia-Pacific region.

Likewise, France's Total will construct a new blending plant in Tuas to replace two existing plants in Jurong Pandan and Pioneer.

Sinopec's new 650 million yuan (S$133.6 million) facility in Tuas was opened last week, its first lubricant manufacturing plant outside China.

"Through the unique and innovative model, three multinational oil and gas companies have achieved a win-win situation," said Sinopec Lubricant Company vice-president Jiang Yunde.

alfoo@sph.com.sg

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