Shell plc subsidiary Shell Singapore Pte Ltd is selling its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd.
The transaction will transfer all of Shell’s interest in the assets to CAPGC, Shell said in a news release Wednesday. Subject to regulatory approval, the transaction is expected to be completed by the end of 2024. The financial details were not disclosed.
The Energy and Chemicals Park comprises Shell’s integrated refining and chemicals assets on Pulau Bukom and Jurong Island. The Pulau Bukom assets include a 237,000 barrels-per-day refinery and an ethylene cracker with a capacity of 1.1 million metric tons per year.
Shell Jurong Island occupies more than 60 hectares on Jurong Island, and 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, according to the release.
Shell said it had initiated a strategic review of its Energy and Chemicals Park assets in response to “the ongoing high-grading of Shell Group’s Chemicals and Products portfolio, changing market conditions and enhanced capital discipline”. Following the strategic review, divestment has been the priority focus, it noted.
Shell and CAPGC have also signed crude supply and products offtake agreements that will come into effect following completion.
“This agreement marks a significant step in Shell’s ongoing efforts to high-grade our Chemicals and Products business, and is a testament to our commitment to deliver more value with less emissions, as outlined at our Capital Markets Day last year,” said Huibert Vigeveno, Shell’s Downstream, Renewable and Energy Solutions Director.
“We are proud of our history at Bukom and Jurong Island and our contributions to the economic growth of Singapore in this sector in the past decades. Our commitment to Singapore remains steadfast and its importance as a regional hub for our marketing and trading business remains important. As Singapore continues to decarbonize, Shell looks forward to a continued partnership with the country, and with our customers in the region,” Vigeveno added.
Meanwhile, in March 2024, the Singapore government announced their partnership with a consortium formed by Shell and ExxonMobil to study the feasibility of a cross-border carbon capture and storage project, according to the release.
CAPGC Pte. Ltd. is a joint venture that is majority-owned and operated by Chandra Asri Group and minority-owned by Glencore through their respective subsidiary companies. Chandra Asri is Indonesia’s leading chemical and infrastructure solutions company, supplying products and services to various manufacturing industries in both domestic and international markets. Glencore is one of the world’s largest global diversified natural resource companies.
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