ExxonMobil to Shut Older Singapore Steam Cracker Amid Global Petrochemical Downturn

ExxonMobil is preparing to wind down operations at the older of its two steam crackers on Singapore’s Jurong Island starting in March, according to four industry sources. The shutdown of the 2002-built facility is expected to be completed by June, marking a major move in response to mounting losses within the global petrochemicals sector. The decision reflects broader industry pressures driven by overcapacity, particularly from China, the world’s largest consumer of petrochemical products used in plastics, apparel, automotive parts, and more.

Although ExxonMobil did not comment on what it called “market rumors or speculation,” the anticipated closure follows the company’s launch of a new steam cracker in Huizhou, China, earlier this year. That advanced unit can produce roughly 1.6 million tons per year of ethylene, positioning the company to focus production in more competitive regions. Over the past two years, Exxon has also gradually reduced term contract volumes with customers in Singapore, prompting local buyers to prepare to source ethylene from the country’s remaining producers.

The affected Jurong Island cracker currently processes naphtha, but analysts expect Exxon to significantly cut naphtha imports once the plant stops running. Data from Kpler shows the company imported about 1.5 million metric tons of naphtha in the first 11 months of this year, compared with nearly 2.5 million tons in all of 2024. Exxon may continue operating some of its derivative polyolefin units by purchasing feedstock externally, though experts note that long-term viability would require unusually low olefin prices.

The shutdown comes as regional petrochemical hubs such as South Korea also undergo consolidation. In Singapore, Exxon previously announced plans to reduce its local workforce by 10–15% by 2027 and agreed to sell its petroleum retail business to Indonesia’s Chandra Asri. Despite these changes, the company recently started up a new refining unit at its 592,000-barrel-per-day Singapore refinery, signaling continued investment in select operations.