Shell to move gas hub to Singapore

Alvin Foo Straits Times 6 Dec 12;

ENERGY giant Royal Dutch Shell will move its new global integrated gas business from Holland to Singapore as early as next year to be closer to the fast-growing Asian market.

The unit, which is now based in The Hague, covers various aspects of natural gas, from exploration to production, transport and downstream use.

Mr Andy Brown, Shell's upstream international director, told a media webcast yesterday: "We have a new integrated gas business that will be going live next year, once we have all the approvals from the various staff councils. It will be based in Singapore.

"We still see potential in Europe with some growth, but the major growth will come now in Asia.

"It's a big step and demonstrates the depth of our relationships in Singapore in all sectors, in particular the chemicals and refining sectors."

The Straits Times understands the move is likely to result in more investment and new jobs being created here.

A Shell spokesman said yesterday: "We are studying the options of related job opportunities in the region. It is too early to comment on the specifics."

Observers said the move is timely, given that Singapore's new liquefied natural gas (LNG) terminal will begin operations next year.

Last month, Shell said it would expand capacity at its ethylene cracker complex on Pulau Bukom to ramp up production of olefins and aromatics by more than 20 per cent.

The ethylene cracker, which started up in March 2010, is the centrepiece of the US$3 billion (S$3.66 billion) Shell Eastern Petrochemicals Complex.

Shell hinted yesterday that there will be more projects here lined up in the coming months.

Shell Chemicals executive vice-president, Mr Ben van Beurden, said: "Will there be more in Singapore? Absolutely... Stay tuned, there's going to be a little more news coming in the next few months about things we are pursuing in Singapore, all building off this large integrated refining petrochemical hub we are developing."