The plant which will be bought by ExxonMobil’s Singapore affiliate has a production capacity of 1.4 million tonnes per annum and is located on Jurong Island.

The acquisition is expected to bring in operational and logistical synergies for the nearby integrated refining and petrochemical complex of ExxonMobil.

ExxonMobil’s largest integrated refining and petrochemical complex is in Singapore. The complex which houses two world-scale steam crackers is capable of processing 592,000 barrels of crude oil per day.

Acquisition of the aromatics plant from Jurong will boost ExxonMobil’s aromatics production in Singapore to more than 3.5 million tonnes per year. Out of this, 1.8 million tonnes of paraxylene is produced.

ExxonMobil Chemical president Neil Chapman said: “Our growth in Singapore is driven by the expected increase in global demand for chemical products over the next decade of nearly 45 percent, or about 4 percent per year, which is a faster pace than energy demand and economic growth.

“Nearly three-quarters of the increased demand is expected to be in Asia Pacific as a result of its rising prosperity and a growing middle class.”

The Singapore complex of ExxonMobil will commence the phased start-up of new specialty polymers facilities later this year. The facilities with a capacity of 230,000 tonne-per-year will produce halobutyl rubber and performance resins used for adhesive applications.

ExxonMobil Chemical basic chemicals, intermediates and synthetics senior vice president Matthew Aguiar said: “As a leading global manufacturer of aromatics, the addition of this aromatics plant to our existing operations in Singapore will help us better serve our customers in key Asian growth markets.

“We continue to make strategic investments to ensure ExxonMobil is well positioned to meet increasing global demand for chemical products.”

The acquisition of the Jurong aromatic plant is likely to be completed in the second half of the year.

Last month, ExxonMobil Chemical and Sabic had announced to build a new petrochemical project with a multibillion dollar investment in Texas, US in the San Patricio County.