Evolving with Singapore in a lower carbon future

More than 130 years ago, ExxonMobil brought kerosene to Singapore through Vacuum Oil for lighting. Today, the city-state is home to the energy major’s integrated refining and petrochemical manufacturing complex, powering far more than lamps as it lights the way to a lower carbon future.

From Singapore, ExxonMobil fuels the planes that connect Asia to the world, and powers ships and trucks that are vital parts of supply chains. It produces chemicals that are the building blocks of modern essentials. Petrochemicals can be found in many things, from food packaging, vehicle components, diapers, even surgical masks and gowns.
 

It has journeyed alongside Singapore’s own transformation from trading port to a global energy and chemical hub.
 

Six decades of growth

The foundation was laid over the decades: from Mobil refinery in 1966 to Esso refinery in 1970. They are seamlessly interlinked as the company’s Singapore Refinery post-merger – and further integrated with its chemical plant.

 

These investments stand at over S$30 billion in fixed assets, making ExxonMobil one of Singapore’s largest foreign manufacturing investors.

“Singapore sits in the middle of a growth region – Asia-Pacific – with a lot of potential,” says Geraldine Chin, chairman and managing director of ExxonMobil Asia Pacific. “Population growth and higher per capita purchasing power will increase the demand for energy and consumer goods. Whether it be transportation fuels, lubricants for industrial use, or the chemicals in consumer goods.”

But Asia-Pacific’s growth prospects are only part of the story. Sound economics – access to feedstock and markets – and strong enablers – human capital and constructive government policies – are essential for the company’s investments. Singapore has delivered on these for six decades.

Today, ExxonMobil produces fuels, base oils for industrial and automotive lubricants, waxes, and petrochemicals, mostly for exports. It also imports LNG for local power generation needs.

The company employs about 3,500 people here, and its business presence supports 2,000 other businesses – mostly small and medium enterprises. Its regional teams in LNG, Trading, Product, and Low Carbon Solutions are also based here.

Most recently, its multibillion-dollar Resid Upgrade Project – on track to start up in 2025 – is set to improve the competitiveness of its manufacturing complex.

Using proprietary technology, the project will convert “bottom-of-the-barrel” products into lower-sulphur fuels, and base stocks – a major component in high-performance lubricants. The project is expected to boost base stock production capacity by 20,000 barrels a day to meet growing regional demand.

Indeed, staying competitive in this rapidly growing region requires constant innovation.
 

Research advantage

Among ExxonMobil’s global workforce of scientists and engineers, more than 1,500 hold Ph.D.s. For the company, research and development starts with fundamental science and engineering.

While the company collaborates with academia and governments, it is judicious about where research investments go. Singapore makes the cut.

The global research talent pool available and ease of setting up test-bed facilities, pilot units, and labs, are what makes it stand out.

Since 2018, ExxonMobil has been partnering local institutions on research programmes and activities.

In 2024, it also launched a S$60 million Corporate Lab with NTU and A*STAR – the first by an energy major in Singapore. The research programmes seek to explore solutions for a lower carbon future.

Chin shares that it takes time for any research idea to be proven, piloted, then scaled for commercial and industrial use. “Our industry expertise helps to accelerate that process,” she says.
 

Building tomorrow’s industries

ExxonMobil’s evolution extends beyond research – it is creating entirely new industries and value chains with others, says Chin.

The company is working with the Singapore government, as part of a consortium with Shell, to evaluate and develop Singapore’s first cross-border carbon capture and storage (CCS) project – targeted to commence in 2030.

CCS captures carbon dioxide emissions from industrial facilities before they reach the atmosphere, then injects the concentrated carbon deep underground for secure storage. It is a solid match for ExxonMobil’s expertise in “molecule management” and subsurface geology – expertise refined over decades of oil and gas operations.

“There are many technologies to reduce greenhouse gas emissions, and the world will need all of them. So we focus on where our knowledge, experience and technical depth can be brought to the fore,” says Chin.

For Singapore, with limited renewable energy options and major industries such as energy and chemicals and power and waste, CCS offers a critical pathway for hard-to-abate emissions.

Hydrogen presents another frontier. Singapore’s national strategy – to make hydrogen a key pathway to net zero emissions by 2050 – envisions that hydrogen could supply half the country’s power needs by then.

ExxonMobil, with decades of hydrogen production and handling expertise at its plants, has partnered with Keppel Infrastructure to develop access to low-carbon hydrogen and ammonia solutions in Singapore. The parties signed a Memorandum of Understanding in 2023 for potential scalable commercial and industrial applications here.

Its Low Carbon Solutions team is also evaluating and progressing low-carbon hydrogen opportunities in Singapore and across the Asia-Pacific region.

Meanwhile, work continues to provide what the company calls “lower emission fuels”, especially for transport sectors that are harder to decarbonise. These include aviation, marine and heavy-duty trucking. Some of these fuels – including sustainable aviation fuel and renewable diesel – can be used in existing engines without major modifications.
 

STEM expertise in the energy future

“As the world goes through the energy transition, we are looking at end-to-end value chains for CCS and hydrogen that don’t exist today,” says Chin. “Sometimes I wish I were younger, so that I could be at the cusp of forming two brand new industries. It’s an exciting time to be right in the middle of these developments.”

That’s often her pitch to young talent. To pursue a STEM (science, technology, engineering, and mathematics) education, and also a career. “The development of engineering technology from lab bench to pilot plant, and then to commercial scale requires talent across the whole value chain.”

“Do we wish the world could move quicker in lowering carbon emissions? Absolutely. But we need to find breakthroughs in science and engineering to do so. These aren’t easy, and we need the best minds working on future solutions.”

The company sees its mission as meeting the rising demands of modern living and energy, while advancing climate solutions to lower emissions – both its own and others’.

The company that once lit Singapore’s kerosene lamps might now power its lower carbon future – extending a partnership that has evolved with each era’s changing energy needs.
 

Source: The Business Times © SPH Media Limited. Permission required for reproduction.