In April 2025, Shell finalized the sale of its Singapore refining and petrochemical assets to a joint venture between Indonesia’s Chandra Asri and Switzerland’s Glencore. The transaction includes the Bukom refinery and Jurong Island facilities, marking the end of Shell’s operations at these sites, which have been active since 1961. The new entity, Aster Chemicals and Energy Pte Ltd, is majority-owned by Chandra Asri and will oversee operations. Shell’s site staff have transitioned to Aster, while office-based employees have relocated to new premises. Financial terms of the deal were not disclosed.
Following the acquisition, Aster commenced procurement activities to support its operations. Chandra Asri initiated purchases of open-specification naphtha for deliveries starting in March, aligning with its role in petrochemical feedstock procurement. Concurrently, Glencore secured crude oil shipments from Canada and Kazakhstan for delivery in May and June, diversifying the supply sources for the Singapore facilities. Under Shell’s management, the Jurong Island site imported approximately 1.5 million metric tons of naphtha annually in 2023 and 2024.
The acquisition positions Chandra Asri as a significant player in Southeast Asia’s petrochemical sector, expanding its operational footprint beyond Indonesia. For Glencore, the deal enhances its access to refined products and provides an outlet for crude oil, increasing its flexibility and trade volume in the Asian market. The joint venture has also established supply and offtake agreements with Shell, ensuring a continued relationship between the entities post-acquisition.
This strategic move reflects broader industry trends, where companies are restructuring portfolios to focus on core operations and adapt to evolving market dynamics. Shell’s divestment aligns with its strategy to reduce its carbon footprint and concentrate on more profitable ventures. Meanwhile, Chandra Asri and Glencore’s investment highlights their commitment to expanding their presence in the region’s energy and petrochemical landscape.
(Source: Reuters)
