May 31, 2016
Volume 7 Issue 8
Singapore Lube Park Opens Facilities
The Singapore Lube Park – a joint venture between Sinopec, Total and Shell – officially opened in the island’s Tuas area last week.
The facility includes an import and export jetty, common pipelines, infrastructure and storage facilities for the partners’ lubricant and grease manufacturing plants, which are located on separate sites adjacent to the lube park.
The joint venture declined to disclose investments details, but its general manager, Looi Nai Tze, said “the three shareholders will [pay for the Park’s operational expenses] based on agreed cost allocations.”
There are four berths at the jetty, and the tank farm – which stores base oils and finished lubricants – has capacity of 159,000 cubic meters. The partner companies plan to expand the tank farm to 208,000 cubic meters.
Officials said the jetty solves one of the biggest challenges that the individual companies faced before the joint venture.
“Direct jetty access will cut the number of road truck transportations by more than 11,000 truck trips a year and reduce our environmental footprint,” Total said in in announcing the opening of its blending plant last July last. That plant cost SG $150 million (U.S. $110 million), has capacity to make 310,000 metric tons per year of lubricants and replaced plants that Total operated in Singapore’s Jurong and Pioneer districts.
Sinopec opened its SG $134 million, 100,000 t/y plant in 2013. Shell is building a 350,000 t/y plant that will replace its existing 240,000 t/y facility in Woodlands, Singapore.
The three companies announced the Lube Park project in 2013 and collaborated with Singapore’s government agencies to set up the facilities. JTC Corp., the government agency responsible for management of industrial land, offered a site and valuable waterfront for the jetty, while the Economic Development Board coordinated with relevant government agencies and companies involved in establishing the park.