ExxonMobil to increase base oil production with Singapore refinery expansion

American oil and gas giant ExxonMobil is expanding its Singapore refinery to increase the production of its base oil product, EHC Group II base stocks, which is used to manufacture lubricants.

Construction is expected to start in the second quarter of this year, and is to be completed in 2019.

ExxonMobil said the expansion will strengthen the global supply of its EHC Group II base stocks – used to maximize performance of major automotive engine oil grades and finished lubricants used in multiple industries – as well as improve the facility’s competitiveness.

“Our new investment in Group II base stocks will enable our customers to blend lubricants that satisfy more stringent specifications, help reduce emissions, and improve fuel economy and low-temperature performance,” said Ted Walko, global basestock and specialties marketing manager. The company demonstrates its commitment to deliver globally consistent base stock quality and supply reliability with this expansion project and the construction of a hydrocracker unit currently under way in Rotterdam in the Netherlands, Walko added.

The expansion project represents the latest in a series of recent ExxonMobil investments in base stock production, including a previous expansion of capacity at the Singapore refinery in 2014, a recently commissioned project at the company’s major integrated facility in Bay town, Texas, and introduction of Group II base stocks into European markets ahead of the anticipated completion of the new Rotterdam hydrocracker unit in 2018.

“Our latest investment affirms our confidence in Singapore, where we have a strong manufacturing base and operate ExxonMobil’s largest integrated refining and petrochemical complex,” said Gan Seow Kee, chairman and managing director of ExxonMobil Asia Pacific Pte Ltd. “We continue to invest in our Singapore facility to improve supply to customers and the competitiveness of our manufacturing assets, all with a focus on long-term business growth in Asia Pacific.”

Work also continues on a previously announced cogeneration project at the Singapore refinery, expected to be completed by the end of 2017, which will improve the facility’s energy efficiency and reduce emissions.

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