Majors Collaborate in Singapore

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Singapore Lube Park – a joint venture among Shell, Sinopec and Total – yesterday announced it will build and operate facilities in southwestern Singapore by 2015 to benefit each partners adjacent lubricant and grease manufacturing plants.

The joint venture claimed the lube park concept is the first of its kind in the lubricants industry. It will cover operations of shared facilities, including an import and export jetty, common pipelines, infrastructure and exclusive storage facilities to service the partners respective new lube oil blending plants and grease manufacturing plants, which will be located on separate sites adjacent to the lube park, Singapore Lube Park stated in a press release. Construction is expected to start later in the year at the site in Tuas, with completion targeted for 2015.

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The announcement outlined the three companies plans for new plants on separate sites adjacent to the lube park. When completed, Shells new lube and grease plant in Tuas will replace its plant in Woodlands, Singapore. Total will construct a new blending plant in Tuas to replace two existing plants in Jurong Pandan and in Pioneer. Sinopecs new plant just started operations.

Sinopec earlier this month began production at its new 100,000 metric tons per year lubricants blending plant in Singapore, the company said in a statement. Sinopec first announced plans to invest RMB 580 million (U.S. $94.5 million) on a blending plant in Singapore July 2011, calling it a model for future global expansion. The project is Chinese government-owned Sinopecs first lubricant plant outside China.

The lube park is the outcome of joint studies conducted by partners Shell Eastern Petroleum, Sinopec Lubricant (Singapore) and Total Oil Asia Pacific.

Our Singapore operations are a vital part of our global lubricants business, as it supplies lubricants and greases to more than 30 countries in the Asia Pacific region, said Dennis Cheong, Shells lubricants supply chain vice president. These new facilities, when operational, will ensure we remain competitive but more importantly, allow us to enhance our offerings to our customers.

Through the unique and innovative model, three multinational oil and gas companies have achieved a win-win situation, which will benefit our lubricant businesses respectively and offer all a prosperous future, said Jiang Yunde, vice president of Sinopec Lubricant Co. Based on the successful cooperative, we will continue to explore the possibility of enhancing this win-win relationship.

Besides substantial cost benefits from the economies of scale, this equal collaboration will allow us to exchange technical expertise and standards across the three global organizations with diverse culture and strengths, added Tan Pai Kok, Totals vice president of lubricants.

Looi Nai Tze was appointed general manager for the Singapore Lube Park joint venture.

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