Shell Sells Assets in Singapore, Chandra Asri Doubles Production Capacity

Shell plans to sell its Singapore plant and other related assets to Indonesia's Chandra Asri and Glencore Group, with the deal expected to close in the first quarter of 2025, a Shell spokesperson announced. This follows Shell's announcement on May 8 that its Singapore physical assets and commercial contracts will be transferred to CAPGC, a joint venture in which Chandra Asri holds a majority stake and Glencore holds a smaller stake. Although the amount of the transaction was not disclosed, the deal was scheduled to close by the end of 2024. However, due to the need to obtain regulatory approval and meet other customary closing conditions, a Shell spokesman said that the completion of the deal has been extended to the first quarter of next year.

Aster Chemicals and Energy, a new unit of CAPGC, will operate the Singapore facility and will handle crude oil procurement and fuel sales, according to industry sources. Shell's Energy and Chemicals Park (SECP) in Singapore comprises integrated refining and chemicals assets on Pulau Bugong and Jurong Island. Wugong Island's assets include a 237,000 barrel-per-day refinery and an ethylene cracker with an annual capacity of 1.1 million tons. Chandra Asri said the acquisition of the SECP assets is in line with its global expansion strategy as it seeks to expand overseas in the energy, chemicals and infrastructure sectors. The acquisition will increase Chandra Asri's overall production capacity from approximately 4.2 million tons per year today to more than 18 million tons per year by 2026.