U.S. energy behemoth
Exxon Mobil Corporation
) has started operation in one of the world's largest ethylene
steam crackers in Singapore. This development is also the
company's most important multi-billion dollar expansion project
at its petrochemical complex in Singapore.
The company's new petrochemical plant expansion project will add
roughly 2.6 million tones of finished products every year by
increasing its capacity roughly by 100%. This expansion includes
one polypropylene plant, one metallocene elastomers unit, one
oxo-alcohol unit, an aromatics expansion and two new polyethylene
plants. All of these units have started their operations while
management expects their ethylene production to start by next few
Management believes this development to be the largest chemical
expansion project in the company's history.
The project is powered by cogeneration plant of 220-megawatt
capacity. Compared to the traditional methods, cogeneration is
much more efficient for the production of power and steam
separately. Moreover, the operating cost and emission of
greenhouse gas are also low for cogeneration.
The development - is expected to bring the total employment of
Exxon Mobil's chemical plant to 1,800 by increasing its workforce
by 50%. Exxon Mobil plans to meet the demand of transportation
fuel and chemicals used for manufacturing plastics across the
Asia Pacific region by expanding its refining and petrochemical
production in Singapore.
Irving, Texas-based Exxon Mobil is the world's largest publicly
traded oil company, engaged in oil and natural gas exploration
and production, petroleum products refining and marketing,
chemicals manufacture, and other energy-related businesses.
Approximately 83% of Exxon Mobil's earnings come from its
operations outside the U.S. The company divides its operations
into three segments, namely Upstream, Downstream, and Chemicals.
Exxon Mobil along with other energy biggies like
Royal Dutch Shell plc
Anadarko Petroleum Corporation
) currently retain a Zacks #3 Rank, which translates into a
short-term Hold rating.
Exxon Mobil boasts of diversified operations across the world
with several new projects expected to come online through 2013.
While Exxon Mobil functions in all corners of the globe, the main
areas of focus for the coming years include the U.S., Canada,
Kazakhstan, West Africa, Australia, Russia, Angola and Iraq for
However, as access to new energy resources becomes increasingly
difficult, Exxon Mobil, like most of its peers, will likely face
headwinds to replace its reserve. Other downsides include
government regulations and weather conditions, as well as
renewable fuel prices, which can result in increased costs,
reduced growth and fines or other sanctions.
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