Jurong Rock Cavern Cements Singapore's Position As Regional Petrochemicals Hub

Jurong Rock Cavern Cements Singapore's Position As Regional Petrochemicals Hub

Date: 01/04/2007
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The first of its kind in the region, the facility is a milestone project for JTC Corporation and a boost to the nation's petrochemicals industry.

"Bold" and "innovative" - these are just two adjectives used to describe JTC Corporation's (JTC) latest undertaking. Hitting the mark is the Jurong Rock Cavern (JRC) project, Singapore's first underground rock cavern for hydrocarbon storage. And tunnelling works are on the way, with Lim Hng Kiang, Minister for Trade and Industry, witnessing the groundbreaking ceremony in February 2007.

MAXIMISING SPACE AND SAFETY

Appointed by the government, who invested S$700 million (US$457.3 million) to kick-start the entire project, JTC took the opportunity to unveil some of the key features of this storage facility during the ceremony. Primarily, the multi-million JRC facility, located at Banyan LogisPark on Jurong Island, will be built at subterranean depths (essentially beneath seabed level of the Banyan Basin). This is especially crucial for it enhances safety and security on the island, a vital factor for the Republic's chemicals industry. Furthermore, it frees up approximately 60 ha of surface land for higher value manufacturing operations, another critical advantage for a land-scarce nation.

Phase One of the construction has begun, and it is expected to provide a storage capacity of approximately 1.47 million cubic m for liquid hydrocarbons such as crude oil, condensate, naptha and gasoil.

"The underground rock cavern project is a multi-million dollar infrastructure development to support Singapore's chemicals industry," says Soo Kok Leng, Chairman, JTC. "The development of the underground hydrocarbon storage cavern at Jurong Island is a strategic project that will further enhance the cluster concept and bring even more benefits to Jurong Island companies."

Although still in its early stages, JRC holds great potential and there is already strong interest from the industry to utilise this facility. Phase One is expected to be completely taken up upon its completion starting from 2010. Due to high demand, JTC is looking into Phase Two of the JRC, which could potentially provide an additional 1.3 million cubic m of hydrocarbon storage space.

And it is this intrepid sense and ambitious attitude that was lauded by Minister Lim during his speech. "Turning Jurong Rock Cavern into reality took years of hard work, imagination and perseverance by many parties both within and outside the government. But it is the spirit of constant innovation and breaking new ground that will ensure that Singapore retains her ability to compete in this fast changing and dynamic competitive environment," says Lim.

ROAD TO SUCCESS

Currently, the chemicals industry in Singapore is experiencing an unprecedented level of high growth. Singapore has established its status as the world's third largest refining centre and Jurong Island is home to more than 80 companies in the petroleum refining, petrochemicals, specialty chemicals and manufacturing business, with total gross investments exceeding S$26 billion (US$17.0 billion).

In fact, based on 2006's figures alone, the industry saw more than S$2.6 billion (US$1.7 billion) in fixed asset investments committed, with more projects streaming in steadily. And some of these developments include Concord Refinery's decision to establish Singapore's first green-field refinery and Sumitomo Chemical's second methyl methacrylate monomer plant commencing its operations.

With all these projects starting to take root, coupled with the development of JRC, Lim is optimistic that the "future of Singapore's chemicals cluster is bright". And so it appears, with the minister promising continued support from the government to ensure the industry’s "continued growth".