September 23, 2025 [The Straits Times]- US energy giant ExxonMobil has begun production at a new plant in Singapore to convert heavy residue that is left after refining of crude oil into higher value lubricant base stocks and lower-sulphur fuels.

The plant’s start-up marks the completion of the multi-billion dollar Singapore Resid Upgrade Project announced in 2019. The project was originally scheduled to complete in 2023 but was delayed due to the Covid-19 pandemic, which affected many large projects here.

ExxonMobil said the new plant on Jurong Island will increase its Singapore base stocks production capacity by 20,000 barrels per day.

The higher production will include up to 6,000 barrels per day of a new-to-industry lubricant for oils, and greases used in commercial vehicles and industrial sectors.

The new plant will also enable the refining complex to increase production of ultra-low sulphur diesel and products that can also be used for lorries, construction vehicles and power generation turbines.

ExxonMobil’s Singapore refinery produces fuels and base stocks for industrial and automotive lubricants, and aromatics that are marketed within Singapore and exported to countries across the Asia-Pacific region.

The company said the plant, which uses a first-of-its-kind technology, is a strategic investment in Singapore and represents ExxonMobil’s ongoing efforts to transform its manufacturing assets to better meet the demand for high-quality fuels.

Ms Geraldine Chin, chairman and managing director of ExxonMobil Asia Pacific, said: “No other company in the world can do what we’ve done in Singapore.”

She added: “We will deliver innovative products to the market by deploying our proprietary technology and expertise. We’re proud of the teams who helped make this possible.”

Experts believe the high-viscosity lubricant market is poised for significant growth worldwide, driven by increasing demand in the automotive and industrial sectors for enhanced equipment efficiency, durability, and performance under extreme conditions.

Asia-Pacific is a leading region where demand for these lubricants is rising amid industrial expansion, technological advancements, and a growing emphasis on environmental regulations that promote the use of high-performance, climate-friendly lubricants.

ExxonMobil is one of Singapore’s oldest and largest investors, with over $30 billion in fixed asset investments to date.

It employs about 3,500 people here, and its operations create business for about 2,000 other firms – mostly small and medium-sized enterprises. Its regional teams that trade oil and liquified natural gas, and work on low carbon solutions, are also based in Singapore.