Jurong Aromatics delays petrochemical project

Jurong Aromatics Corp. said it is delaying the start of its US$2.4 billion petrochemical project on Jurong Island in Singapore by two years to 2013. Jurong Aromatics cited the global economic slowdown as the reason for the delay, but the company said it has no plans to suspend the project. Despite the delay, Singapore’s Economic Development Board announced that it would to support the company and see how it can facilitate the project. According to reports, Jurong Aromatics is currently negotiating with the Royal Bank of Scotland, West LB AG, KBC Exploitatie N.V. and Banca Intecsa S.p.A. to raise more capital for the project. The project was first announced in 2007 and is expected to produce 2.5 million tons of petroleum products, including jet fuel, when completed. Jurong Aromatics is a consortium that is 60% owned by Jurong Energy Corp., a firm led by Vijay Goradia and M Y Ling, both founding shareholders of the Continental Chemical group of companies. (May 22, 2009)