Friday, Feb 26, 2010

SINGAPORE (Dow Jones)--Royal Dutch Shell PLC (RDSB) said Friday it is in the final stages of preparing to start its ethylene cracker complex at Shell Eastern Petrochemicals Complex in Singapore.

The ECC, which has the ability to produce 800,000 tons a year of ethylene, is in "final preparations for start up," the company said in a statement, without specifying the date.

Shell said "major construction activities at its ethylene cracker complex have been completed and that commissioning work is underway to start up the plant."

Company officials have said the ethylene plant will begin operations in the first quarter of 2010.

Construction of the Shell Eastern Petrochemicals Complex began in October 2006. It will eventually be able to produce ethylene, propylene, benzene, butadiene and monoethylene glycol when finished.

While about half of its ethylene will be the feedstock for Shell's monoethylene glycol plant on Singapore's Jurong Island, already commissioned in November, most of the remainder will likely be sold, increasing regional ethylene supply.

The ethylene plant will feed mainly on hydrowax, a form of residual fuel, while also taking in heavy gasoil, liquefied petroleum gas, and small portions of naphtha.

Those feedstocks will be mainly from Shell's existing 500,000 barrel-a-day refinery on Bukom Island, Shell officials have said.

-By Wayne Ma, Dow Jones Newswires; +65 6415 4065; wayne.ma@dowjones.com

(END) Dow Jones Newswires

26-02-10 0316GMT