Mobil's investment plans

Mobil's investment plans

SINGAPORE (AFP): U.S. oil giant Mobil Corp. unveiled plans to set up new oil and petrochemical facilities here costing S$2 billion (US$1.42 billion) as part of its regional business expansion drive.

The facilities comprise a S$1.5-billion ethylene cracker project, Mobil's first in Singapore, and a lube base oil plant and an aromatics expansion project costing $500 million.

Jerry Kohlenberger, general manager of Mobil Oil Singapore Pte. Ltd., told a news conference that his company would conduct studies on the ethylene project with Singapore's government agencies, Economic Development Board (EDB) and Jurong Town Corp.

Ethylene is a petrochemical feedstock for making plastics, fabrics and paints, among other products.

"If everything looks good, after 12 to 15 months of study, we can proceed with the cracker," Kohlenberger said.

The EDB would "most probably" be a partner in the cracker project, its deputy director Tan Suan Swee said. "We see this as a strategic project in Singapore," he said.