press release

Texaco Press Release - Texaco, Messer Joint Venture Completes Financing for Gasification Plant


WHITE PLAINS, N.Y., Feb. 1, - Texaco today announced the closing of $175 million of project financing for a gasification plant on Jurong Island, Singapore. Singapore Syngas Pte Ltd., a 50-50 joint venture of affiliate companies of Texaco Inc. and Messer Griesheim GmbH, was formed in 1998 to construct, own and operate this facility. Construction currently is 75 percent complete with commercial operation anticipated by mid-2000.

Utilizing the proprietary Texaco Gasification Process, the plant will gasify approximately 550 metric tonnes per day of high-sulfur refinery fuel oil from the Singapore Refining Company to produce 900 metric tonnes per day of carbon monoxide for sale to the new Celanese acetic acid plant, which is also located on Jurong Island, under a long-term purchase agreement. The gasification plant will also supply up to 25 million standard cubic feet per day of high purity hydrogen back to the refinery.

"This project represents the fourth successful financing of a Texaco Gasification Process facility in the international project finance market, a further validation of the commercial strength of this technology," explained James C. Houck, President of Texaco Power and Gasification, a division of Texaco Inc. "Located on Jurong Island, a hub for the chemical industry, this project is well situated for future expansion opportunities."

Dresdner Bank of Germany is the lead underwriter of the limited recourse financing for this project.

Texaco Power and Gasification is recognized as a world leader in gasification, an environmentally advanced technology that converts low value hydrocarbons into clean synthesis gas to produce chemicals, electricity, chemical fertilizer and other industrial products. Worldwide, there are 68 Texaco owned or licensed gasification plants operating or under construction, producing approximately 4.7 billion standard cubic feet per day of synthesis gas.

Updated: February 2000