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Jurong Aromatics: Schedules and support

10 October 2011

The Jurong Aromatics financing marks a return to classic project finance structures in petrochemicals by using several innovations and drawing on the strengths of its sponsor group. By Bruce Macfarlane and Remco Meeuwis, in ING Bank’s natural resources advisory group.

Read more: [jurong] [aromatics] [essar] [sk] [glencore] [bp] [arovin] [shefford]

Financial close for the $2.4 billion Jurong Aromatics Corporation greenfield petro­chemical project took place in May 2011. The financing faced several challenges, and was originally scheduled to close in the midst of the global financial crisis. But the sponsors and other stakeholders showed commitment and confidence in the project, by supporting a restructuring that better reflected the new market conditions, and led to the successful close. Jurong is a complicated project and its progress could never have been rushed, so the staying power of the stakeholders was critical to keeping the financing on track. The Jurong Aromatics project involves the development of a 4.5 million tonnes per year condensate splitter and aromatics faci­li­ty to be built on Jurong Island, Singapore. Singapore is strategically located at a cross­roads between buyers in the Asian markets and feedstock suppliers in the Middle East and Australia, making it an ideal hub for the petroleum and...


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