Oil giant ExxonMobil announced yesterday that it is expanding its Singapore refinery to increase the production of base oil, 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 maximise 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 Mr Ted Walko, global base stock and specialities marketing manager.
The group said work continues on a previously announced co-generation project at the refinery, which is expected to be completed by the end of this year.
Mr Damian Chan, executive director of energy and chemicals at the Economic Development Board, said ExxonMobil's expansion reflects Singapore's importance as a base in Asia to help companies capture opportunities in the region.
"Singapore is committed to supporting the enhancement and upgrading of existing refineries as a strong foundational base will allow for long-term sustainable growth of the energy and chemicals sector."