ExxonMobil to Permanently Close Singapore Petrochemical Unit
ExxonMobil plans to permanently shut down one of its two steam crackers at its Singapore petrochemical complex by June 2026, according to sources. This move aligns with a global industry reshuffling to address severe overcapacity, particularly from China, which has led to razor-thin margins and losses in the petrochemical sector. The company has also been engaged in broader restructuring, including staff reductions and asset sales in Singapore, amid challenging market conditions affecting Asian and European producers.
ExxonMobil is preparing to permanently close one of its two steam crackers at its major Singaporean refining and petrochemical complex, with completion anticipated by June 2026. This strategic decision, reported by Reuters citing anonymous sources, reflects the challenging landscape of the global petrochemical industry. The sector has been experiencing significant overcapacity, predominantly driven by a massive build-up in China, which has squeezed profit margins to unsustainable levels and resulted in widespread losses.TheThe Singapore Chemical Plant (SCP), which is integrated with Exxon's 592,000-barrel-per-day refinery in Jurong, has an ethylene production capacity of 1.9 million tonnes annually. The planned closure of the older cracker is part of a broader industry adjustment, as evidenced by South Korea's call for its petrochemical sector to cut excess capacity and restructure operations due to the global glut. South Korean companies have already agreed to reduce naphtha-cracking capacity by up to 25%.ExxonMobil’s spokesperson declined to comment on market rumors regarding the shutdown. However, this move is consistent with the company's wider restructuring efforts, which include a projected 10-15% reduction in its global workforce by 2027. Additionally, in October, Exxon sold its Esso-branded retail fuel station network in Singapore to Indonesia’s Chandra Asri Group. This series of actions underscores ExxonMobil's response to the current economic pressures and oversupply issues plaguing the petrochemical market worldwide.
