The Singapore petrochemical industry experienced an annual growth of 21% last year due to strong government support, huge reserves of Ethane and Naphtha and rising domestic demand.
Singapore Chemical Industry Council said that the petrochemical industry of Singapore experienced strong annual growth of 21% to reach $26.8 Billion last year, as reported by ICISNews.
The growth in the Singapore petrochemical industry is a natural progression because it has a strong base of petroleum refining that ensures enough feedstocks for the industry. Singapore has selected Jurong Island to establish petrochemical industries and to make maximum use of the high growth rate in these industries.
The high growth rate in Singapore petrochemical industry is possible due to strong government support. The Singapore government is framing new policies to provide favorable environment to the industry so that the output is increased. Besides, the government is giving support to the industry through skilled and motivated workforce.
Another important reason for high growth in Singapore petrochemical industry is merger of petrochemical companies with the government. The merger forces new players to share innovative methods and technology with already existing companies. Hence, the production of Singapore petrochemical industry has increased.
Moreover, high demand for petrochemical products in domestic market due to good connectivity has also boosted growth in the petrochemical industry. Another important factor that pushed the growth in petrochemical industry is increasing production of ethane against Naphtha. There is also a double increase in ethane gas plants over Naphtha plants as a result the production in Singapore petrochemical industry has increased.
Furthermore, the Singapore petrochemical industry will see high growth in coming five to seven years as some mega projects will be completed by giant petrochemical players such as ExxonMobil and Shell. These two companies are constructing a plant on Jurong Isalnd in which 1.47 Million liters cubic meters liquid hydrocarbons could be stored. The construction work of the plant will be completed by 2010.
According to a Research Analyst at RNCOS, “The Singapore petrochemical industry is growing at a rapid pace on the back of huge reserves of Naphtha and Ethane used for manufacturing petrochemical products. High growth in petrochemical industry helps in extending the business as more production would increase the export, which in turn opens new opportunities for petrochemical companies.”
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