ExxonMobil will permanently shut its older steam cracker at the Singapore petrochemical complex, with operations ceasing in March 2026 and the shutdown completed by June 2026. The older unit, which had an annual capacity of roughly 900,000 tonnes, will be replaced by the newer 1.1‑million‑tonne cracker that has been operating since 2013.
The decision follows a global overcapacity trend that has compressed petrochemical margins, especially in China. The older Singapore cracker is less efficient and incurs higher operating costs, making it less competitive in a market where feedstock prices and product margins are under pressure. Shutting the unit also reduces ExxonMobil’s exposure to Singapore’s rising carbon tax and the need to import naphtha, thereby lowering its environmental and supply‑chain costs.
Strategically, the closure aligns with ExxonMobil’s focus on newer, integrated facilities such as the Huizhou complex in China and the remaining assets at the Singapore site. The company has also announced plans to cut its Singapore workforce by 10‑15% by 2027 and to sell its petroleum retail operations to Indonesia’s Chandra Asri Group, further streamlining its portfolio.
The shutdown will reduce feedstock imports, lower operating expenses, and free capital for investment in higher‑margin projects. While it may temporarily affect local supply chains and employment, the move positions ExxonMobil for a leaner, more profitable operation in a market where efficiency and cost control are critical.
ExxonMobil has not issued a direct comment on the decision, consistent with its policy of not commenting on rumors. The action reflects a broader industry shift toward consolidating older, less efficient assets in favor of newer, more competitive facilities.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.