Overview
Petrochemical Sector has great potential thanks to rich energy and chemical industries
While Singapore’s petroleum industry continues to amass global influence in energy production and exports, the island plays host to one of the largest energy trading hubs in the world and the third-largest oil refining centre globally. In fact, the country attracted enough interest to become a member of the International Energy Agency (IEA) in 2016. In 2020, Singapore ranked as the fifth-largest refinery export hub in the world and sat among the global top 10 in chemical exports.
The IEA has estimated that oil demand will increase by about 1 million barrels per day, on average, every year up to 2025. Thus, with a projected population increase of 1.7 billion as well as increasing regional development, Asia is positioned as the industry’s biggest demand driver. Furthermore, global players such as Mitsui Chemicals, BASF and Lanxess have reportedly invested over USD 26 billion in the Petrochemical Sector.
Jurong Island, Singapore’s manufacturing and petroleum refining hub, has attracted investments worth over USD 37 billion as of 2021. It hosts major operations of more than 100 chemical hubs from around the world and some of the largest downstream global leaders like ExxonMobil, Shell and Chevron.
China remains biggest export market for Singapore with stable demand
In 2018, China made up around 40% of Singapore’s exports, making the global chemicals player a major market for the country. Even in 2020, when the COVID-19 pandemic was at its peak, the demand for petrochemicals from China remained relatively stable and their speedy recovery post-pandemic, assisted in fuelling strong growth in the petrochemicals market in early 2021. In addition, the recent Regional Comprehensive Economic Partnership (RCEP), which includes the 10 ASEAN nations, is expected to give a healthy long-term boost to Asia’s petrochemical industry.
Leading global companies continue to expand in Singapore
In April 2019, ExxonMobil revealed a multi-billion dollar programme to expand its manufacturing complex within Singapore, which also happens to be its largest integrated refining and petrochemical complex worldwide. The expansion will enable the company to convert fuel oil and other crude products into lube base stocks and distillates of higher value. Moreover, the company’s chemical arm also officially opened two new plants that produce halobutyl rubber on Jurong Island.
Finnish energy company, Neste, made the biggest investment in its history worth USD 2.2 billion in 2020, to expand its biofuel capacity in Singapore. The company expects to raise the total renewable capacity from 2.7 million tonnes in 2020 to 4.5 million tonnes by 2022.
Key Trends
Petrochemical Sector expands, driven by contributions in R&D, and more
In order to conduct exploratory research, optimization, problem solving and process development for the pilot scale projects of petrochemical businesses located in Singapore, the Institute of Chemical and Engineering Sciences (ICES) was established. It helps petrochemical companies in Singapore develop new processes and products, while co-existing with other private research institutes set up by petrochemical companies like BASF’s Competence Centre for Nanostructured Surfaces and Organic Electronics.
Furthermore, Singapore has put in considerable effort to make sure that petrochemical companies in the country do not face a deficit of skilled talent, by creating the Chemical Process Technology Center in Jurong Island. Engineering graduates are trained with a live kerosene splitter by using simulations of the initiation, safety procedures and termination.
The nation is also well known for its reputed IP rights protection, which increases incentives for petrochemical companies that are aiming to commercialize and develop proprietary manufacturing technologies and processes.
Digitalization and automation improve efficiency
The Singapore Chemical Industry Council Advanced Manufacturing (SAM) Committee focuses on transforming the domestic chemical industry through development, as well as capturing new growth patterns by adopting innovative technology. It aims to raise awareness and change mindsets on adopting digitalization and advanced manufacturing. Companies like Chevron Oronite and Shell have implemented new technologies within their Singapore branches.
Industry set to recover post COVID
Despite supply chain disruptions, project delays, decline in demand and cuts to capital spending and operations, petrochemical projects in Asia may still have great opportunities. Most of Asia has managed to overcome the effects of the COVID-19 outbreak and are believed to be on their way to recovery from the weakened global economy. In fact, most new cracker projects in Asia are proceeding ahead despite a few delays caused by the pandemic. Additionally, the rise in Asia’s crude oil refining capacity targeting the increasing demand for consumer goods and fuels, could also be a key driver of petrochemical projects.
Key Statistics
- In 2018, the Singapore petroleum industry was able to produce 20,000 barrels of crude oil per day. That converts to about 67 million long tons of oil being available every year for exports.
- The value added to GDP by the Singapore petrochemical manufacturing industry in 2021 was at its highest level at SGD 7.66 billion, which is in stark contrast to its lowest contribution of SGD 0.77 billion in 2012.
- The output of petrochemical manufacturing in 2021 amounted to SGD 38.61 billion, out of a total chemical manufacturing output of SGD 92.39 billion.
- In 2021, Singapore’s petrochemical import value amounted to EUR 6 billion.
- In 2021, Singapore held 2.8% of the global exports petrochemical market.
- As of 2022, the petroleum industry holds 43% of the chemical market in Singapore.
Top 10 Petrochemical MNCs in Singapore
DOW CHEMICAL PACIFIC (SINGAPORE) PRIVATE LIMITED
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SHELL EASTERN PETROLEUM (PTE) LTD
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CHEVRON SINGAPORE PTE. LTD.
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SINOPEC HONG KONG (SINGAPORE) PTE. LTD.
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BP SINGAPORE PTE. LIMITED
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TOTALENERGIES MARKETING ASIA-PACIFIC MIDDLE EAST PTE. LTD.
TotalEnergies is an energy company which is headquartered in France. The company produces and markets natural gas, fuels and electricity. It is actively doing business in more than 130 countries across the globe and has been in Singapore since 1982. The business functions of TotalEnergies in Singapore include Trading & Shipping; Exploration & Production; and Gas, Renewables & Power, among others. TotalEnergies Marketing Asia-Pacific Middle East was launched by the firm’s Marketing & Services division. The lubricants blending plant in Tuas, which boosts lubricant supply in the Asia-Pacific region and the Middle East, is a vital hub on the global network of TotalEnergies.
BASF SOUTH EAST ASIA PTE. LTD.
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EXXONMOBIL ASIA PACIFIC PTE. LTD.
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PETROCHINA INTERNATIONAL (SINGAPORE) PTE. LTD.
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ARAMCO TRADING SINGAPORE PTE. LTD.
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Top Singapore Large Local Enterprises in Petrochemical
CHEMICAL INDUSTRIES (FAR EAST) LIMITED.
Established in 1963 in Singapore, Chemical Industries (Far East) is the chief supplier of key chemicals to sectors such as petrochemical, electronics, pharmaceutical, and water-treatment island-wide. As a manufacturer of liquid chlorine, the company has the necessary equipment and storage space, and is well equipped to handle chlorine safely. Chemical Industries (Far East) also produces caustic soda, hydrochloric acid in different concentrations customized to its customers’ needs, sodium hypochlorite, and other chemicals. The firm is recognized as an overseas producer and has achieved bizSAFE Level 4, ISO 9001, and ISO 14001 certifications. All its products are certified Halal to Muslims according to Islamic Law.
PETROCHEMICAL CORPORATION OF SINGAPORE (PRIVATE) LIMITED
Incorporated in 1977, the Petrochemical Corporation of Singapore (PCS) is a hub for the island’s petrochemical and petroleum sectors. PCS’ ethylene plants incorporate the latest technology and serve more than 10 petrochemical pipeline customers on Jurong Island, aiding them in the production of petrochemical products such as naphtha, gasoline and LPG. The continuous movement of goods to clients on Jurong Island and elsewhere is made possible by an extensive network of pipes and storage facilities. The firm produces ethylene and propylene, and other by-products. Among the company’s portfolio of products are acetylene, butadiene, 1-butene, MTBE, benzene, toluene and xylene.
CKG CHEMICALS PTE LTD
CKG Chemicals is a Singapore-based company that has traded in petrochemicals and related products since 1990. Nylex (Malaysia) Berhad – Polymer Division, is the parent company of CKG Chemicals. Nylex has expertise in the petrochemicals, industrial and speciality chemicals, plastics, and polymers businesses, and has more than 16 subsidiaries that operate mainly in Malaysia, Singapore, Indonesia and Vietnam. The business expanded in order to produce and distribute products such as PVC leathercloth, geosynthetics, films and sheets, and rotationally moulded products to customers in Singapore.
THE POLYOLEFIN COMPANY (SINGAPORE) PTE. LTD.
Founded in 1984, The Polyolefin Company (Singapore) is a polyolefin manufacturer in Singapore, and it is also recognized as a polyolefin producer in Southeast Asia. The company’s core business activities are the manufacturing and distribution of Ethylene Vinyl Acetate (EVA), Polypropylene (PP), and Low-Density Polyethylene (LDPE). The autoclave technology from Japan's Sumitomo Chemical is used to create EVA grades. As a signatory to the Singapore Chemical Industry Council (SCIC), the firm has pledged its commitment to Responsible Care Initiatives. It is a bizSAFE partner, and has also received the ISO9001, ISO 45001 and ISO 14001 certifications.
INTEGRA PETROCHEMICALS PTE. LTD.
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KERNEL OIL PTE. LTD.
Kernel Oil is a crude oil and oil product trading company which was established in Singapore in 2004. The firm trades in a wide range of crude oil grades from the Far East, the Persian Gulf, the Mediterranean and West Africa. Presently, Kernel Oil is a multinational company with offices in Jakarta, the United Arab Emirates, Bangkok, Melbourne, Nigeria and Geneva. Kernel Oil’s product portfolio includes trade in Bitumen Residue, Gasoline, Gas Oil, Fuel Oil, High-Speed Diesel, Naphtha and Vacuum Residue, among others.
TEXAS PETROCHEMICAL ASIA PACIFIC PTE. LTD.
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TPSC ASIA PTE. LTD.
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RCL INDUSTRIAL PRODUCTS PTE. LTD.
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GEMOIL (SINGAPORE) PTE. LTD.
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Top Singapore SMEs in Petrochemical
INNOV OIL PTE. LTD.
Founded in 2009, Innov Oil is a Singapore-based company with expertise in the production, development and marketing of polymers that are used in lubricant manufacturing across Asia. The company has also established its presence in Europe and the Middle East. Innov Oil has been at the forefront of the development of olefin copolymers due to rising global demand for higher quality lubricants. The company offers a wide range of viscosity modifiers and index improvers. Innov Oil also focuses on R&D, technical field support, unique customized products and problem-solving.
PRIDE-CHEM INDUSTRIES PTE LTD
Pride-Chem Industries, which was incorporated in 1987, is a firm that manufactures and trades in products such as anhydrous ammonia gas, ammonium hydroxide and poly aluminium chloride solutions, and copper oxide powder. Headquartered in Singapore, the company has established a presence in Malaysia as part of its business expansion strategy in South East Asia. With expertise in petrochemical separation, purification and formulation technologies, the firm is able to produce customized quality products and services. Pride-Chem is ISO 9001, ISO 14001 and bizSAFE Level 4 certified.
BUNKERS MARINE PTE. LTD.
The primary activity of Bunkers Marine, which was founded in Singapore in 2009, is worldwide bunker trading, which covers all facets of bunkering, lubricants and petroleum cargoes. It specializes in bunker risk management, lubricant trading, and spot and contract bunker brokering and trading. The firm has oil tankers, tank trucks and barges to handle the transportation of petrochemical raw materials, petroleum products and liquefied petroleum gas. Bunkers Marine supplies bunker fuel to ports, shipyards, container berths and OPL (off-port-limits) in Singapore. In carrying out its operations, the company pays close attention to environmental concerns.
CHEMICAL SPECIALTIES (SINGAPORE) PTE. LTD.
Incorporated in Singapore in 2006, Chemical Specialties (Singapore) is a chemical processing and manufacturing company, which conducts its business in the Southeast Asian region as well as across the globe. The company’s plant on Jurong Island is pipeline connected to both ethylene oxide and propylene oxide – which are two key components of the chemical industry. Additionally, Chemical Specialties (Singapore) has the ability to build pipelines and establish connections with prominent bulk tank storage companies, whose quayside jetties permit bulk shipping of limitless quantities of products and raw materials.
SINGAPORE HIGHPOLYMER CHEMICAL PRODUCTS PTE LTD
Singapore Highpolymer Chemical Products (SHCP), which was founded in Singapore in 1974, is the distributor of high-quality Unsaturated Polyester Resins (UPR) to more than 50 countries across the globe. The company’s product portfolio includes trade in the five major grades of UPR: Bisphenol, Het Acid, Iso Phthalic, Ortho Phthalic, and Vinyl Ester grades. Fibreglass Reinforced Plastics (FRP) are now widely utilized by companies in the construction industry for a number of products across a broad range of sectors. SHCP also caters to an array of FRP-related items in the building and construction industries.
PS ENERGY PTE. LTD.
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ASIA POLYURETHANE MFG PTE LTD
Founded in 1985, Asia Polyurethane Manufacturing offers petrochemical-based products to its customers. It has expertise in providing customized polyurethane solutions to clients in the ASEAN region. The company has its headquarters in Singapore and exports its products to more than 42 countries across the globe. Its wide range of product offerings includes polyurea coatings, polyurethane foam, mould release agents, vacuum blankets for aircraft leak detection, and more. Asia Polyurethane Manufacturing caters to several industries such as automotive, hydroponic farms, agricultural farms and construction, among others.
POLYSTAR TECHNOLOGIES PTE LTD
Polystar Technologies, which was established in Singapore in 1997, has expertise in the manufacture and distribution of high-quality polymeric compound and rubber parts-related components in the Asia-Pacific. These products serve clients in several industries, including automotive, medical, consumer electronics and the military. The company is ISO 9001 certified. Polystar Technologies trades in products such as styrene, phenolic, acetyls, acrylics, oxo chemicals, ethylene oxide derivatives and polymers. The firm works in close collaboration with its customers, suppliers and employees to provide the highest quality products at competitive rates with well-timed deliveries.
DYNAMIC CHEMICAL PTE. LTD.
Incorporated in Singapore in 1988, Dynamic Chemical is a petrochemical and petrochemical-based solvents distributor in the island. The firm also exports and distributes more than 35 products across 10 countries in the Asia-Pacific region. Additionally, Dynamic Chemical trades in feedstocks, and other organic and inorganic chemicals. The company has built a network of supply sources over the years, and secured product supplies from some of the most reputable international petrochemical and chemical manufacturers in Singapore and the surrounding region, including ExxonMobil Chemical, Shell Chemicals, Mitsubishi Gas Chemical, Sasol Chemicals, PetroSA, and Eastman Chemical.
BEM SINGAPORE PTE. LTD.
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Top Singapore Fastest-Growing Companies in Petrochemical
ALTIS INTERNATIONAL SINGAPORE (PTE.) LIMITED
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BEM SINGAPORE PTE. LTD.
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REHAU PTE LTD
Founded in 1978 in Singapore, REHAU is a global polymer processing company which distributes products to the automotive, construction and industry sectors. It is an arm of the German group of companies, The REHAU Group. The group is specialized in the areas of processing and manufacturing of technical hoses, materials, sheets, strips, profiles, seals and system solutions. REHAU’s product range includes a variety of items made from silicone rubber, a polymer material from the elastomer group. These are customized for specific customer applications which is more economical.
ELLSWORTH ADHESIVES (SINGAPORE) PTE. LTD.
Repeated as per client
ASIA POLYURETHANE MFG PTE LTD
Founded in 1985, Asia Polyurethane Manufacturing offers petrochemical-based products to its customers. It has expertise in providing customized polyurethane solutions to clients in the ASEAN region. The company has its headquarters in Singapore and exports its products to more than 42 countries across the globe. Its wide range of product offerings includes polyurea coatings, polyurethane foam, mould release agents, vacuum blankets for aircraft leak detection, and more. Asia Polyurethane Manufacturing caters to several industries such as automotive, hydroponic farms, agricultural farms and construction, among others.
DYNAMIC CHEMICAL PTE. LTD.
Incorporated in Singapore in 1988, Dynamic Chemical is a petrochemical and petrochemical-based solvents distributor in the island. The firm also exports and distributes more than 35 products across 10 countries in the Asia-Pacific region. Additionally, Dynamic Chemical trades in feedstocks, and other organic and inorganic chemicals. The company has built a network of supply sources over the years, and secured product supplies from some of the most reputable international petrochemical and chemical manufacturers in Singapore and the surrounding region, including ExxonMobil Chemical, Shell Chemicals, Mitsubishi Gas Chemical, Sasol Chemicals, PetroSA, and Eastman Chemical.
INEOS SINGAPORE PTE. LTD.
INEOS is a global chemical company based in the United Kingdom. It manufactures many polymers and linked petrochemical products such as polyethylene and polypropylene. INEOS operates 36 individual business units with 194 sites in 29 countries, including INEOS Singapore, which was incorporated in 2005. In Singapore, INEOS supplies styrenics with a focus on styrene monomer, polystyrene, ABS Standard, and styrenic specialities. The business offers styrenic applications for numerous common items in a wide range of industries, including automotive, electronics, household, building, healthcare, packaging, toys, sports and leisure.
CKG CHEMICALS PTE LTD
CKG Chemicals is a Singapore-based company that has traded in petrochemicals and related products since 1990. Nylex (Malaysia) Berhad – Polymer Division, is the parent company of CKG Chemicals. Nylex has expertise in the petrochemicals, industrial and speciality chemicals, plastics, and polymers businesses, and has more than 16 subsidiaries that operate mainly in Malaysia, Singapore, Indonesia and Vietnam. The business expanded in order to produce and distribute products such as PVC leathercloth, geosynthetics, films and sheets, and rotationally moulded products to customers in Singapore.
MITSUBISHI CHEMICAL METHACRYLATES SINGAPORE PTE. LTD.
Headquartered in Japan, Mitsubishi Chemical Group Corporation manufactures a wide variety of healthcare supplies, industrial materials and performance products. It is the parent firm of Singapore-based Mitsubishi Chemical Methacrylates Singapore, which was founded in 2005. The company manufactures methacrylates which are used as building blocks for acrylics. Methacrylates are fully recyclable and polymerize easily to form resins and polymers with high-performance characteristics, including excellent durability, strength, transparency, UV, and abrasion resistance. These qualities bring benefits to many of the products manufactured for sectors such as automotive, electronics, health and advertising.
KOLMAR SINGAPORE PTE. LTD.
Headquartered in Switzerland, Kolmar Group AG is a global enterprise that handles more than 100 different petrochemicals and energy products across the globe. The firm has over 25 offices located around the world – its Singaporean office, Kolmar Singapore, was founded in 2006. Kolmar Singapore’s line of business includes manufacturing and marketing of petrochemicals, petroleum and renewable fuels worldwide from the island. The firm’s product portfolio covers a wide range of olefins, solvents, crude oil and oil products, fibre intermediates, gasoline components, and more.