ExxonMobil plans to permanently shut down the older of its two steam crackers on Singapore’s Jurong Island, with closure beginning in March and full shutdown expected by June, Reuters reported, citing four sources. The move comes as petrochemical producers worldwide face losses from sharp overcapacity driven largely by China.

The 2002-built plant has been winding down as ExxonMobil gradually reduced term contract volumes in Singapore over the past two years. The company’s second Jurong Island cracker, launched in 2013, has a capacity of 1.1 million tons per year and will continue operations. Local buyers are expected to shift to Singapore’s two remaining ethylene producers.

Trade data from Kpler shows ExxonMobil imported approximately 1.5 million metric tons of naphtha in the first 11 months of 2025, down from nearly 2.5 million tons in 2024. The company also plans to cut 10–15% of its Singapore workforce by 2027 and has agreed to sell its local petroleum retail business to Indonesia’s Chandra Asri.

The closure follows ExxonMobil’s startup this year of a new 1.6 million tons per year steam cracker in Huizhou, China. Despite the Singapore cuts, ExxonMobil began operating a new refining unit at its 592,000 bbl/d Singapore refinery in September.

ExxonMobil declined to comment on what it described as market speculation.