Shell to sell Singapore refining and petrochem assets to Chandra Asri-Glencore joint venture
10 May 2024
British multinational oil and gas company Shell Plc on Wednesday said it has agreed to sell its entire stake in Singapore refinery and petrochemicals business to a joint venture between Indonesian chemicals firm Chandra Asri and Swiss mining and commodity trading company Glencore.
Accordingly, Shell Plc subsidiary Shell Singapore Pte Ltd and CAPGC Pte Ltd, a joint venture of Chandra Asri Capital Pte Ltd and Glencore Asian Holdings Pte Ltd have entered into an agreement to transfer Shell’s Energy and Chemicals Park in Singapore’s Bukom and Jurong Island to CAPGC.
Shell said the sale is part of its strategy to divest high-carbon operations as part of its transition to a low-carbon refiner.
The acquisition of Shell’s refinery and chemicals business in Singapore will bolster Glencore’s trading operations in Singapore.
Shell to sell interest in Singapore Energy and Chemicals Park to CAPGC
Huibert Vigeveno, director of Shell’s downstream, renewable and energy solutions business said the sale is also in line with its commitment to be part of Singapore’s decarbonisation efforts even as Singapore remains an important regional hub for its marketing and trading business.
Under the deal, employees of Shell Energy and Chemicals Park Singapore will continue to work under the new ownership, ensuring continuity and operational reliability to the business.
Shell expects to conclude the transaction, which is subject to regulatory approval, by the end of 2024.
Shell Energy and Chemicals Park Singapore, an integrated refining and chemicals facility, in the Pulau Bukom and Jurong Island, includes a 237,000 bpd refinery and a 1.1 million tonnes-a-year ethylene cracker.
The refinery-cum-petrochemicals complex spread over more than 60 hectares, manufactures petrochemicals, including ethylene oxide, ethoxylates, styrene monomer and propylene oxide. It is Shell’s largest petrochemical production and export center in the Asia Pacific region.