(Reuters) - Exxon Mobil Corp said on Tuesday it had made a final investment decision on a multi-billion dollar expansion of its integrated manufacturing complex in Singapore that would help it increase production of cleaner fuels with lower-sulfur content.
The International Maritime Organisation (IMO) is introducing new rules on marine fuels from 2020, limiting the sulfur content to 0.5 percent from 3.5 percent, to curb pollution from ships.
The shipping and oil refining industries are scrambling to prepare for the shift and have made large investments to comply with the new standards since they were announced in 2016.
Exxon’s expansion project, which is expected to come online in 2023, would convert fuel oil and other residual crude products into higher-value lube base stocks and distillates, the company said in a statement.
The company said the expansion would increase its capacity to produce cleaner fuels with lower-sulfur content by 48,000 barrels per day, including high-quality marine fuels.
Exxon did not specify the amount it plans to invest in the expansion project.
The Singapore refinery is Exxon’s largest with a capacity of about 592,000 barrels per day. Singapore is also home to the oil giant’s biggest integrated petrochemical complex.
The company said the expansion project is part of a plan to further enhance the competitiveness of its Singapore facility, which includes the world’s only steam cracker capable of cracking crude oil.
Reporting by Koustav Samanta in SINGAPORE; Editing by Subhranshu Sahu