Shell to sell Singapore refinery and petrochemical assets to Chandra Asri and Glencore

CAPGC is majority owned and operated by Chandra Asri Group and minority owned by Glencore through their respective subsidiary companies, the Indonesian company said in a statement.

Shell’s assets include a refinery capable of processing 237,000 barrels per day (bpd) of oil and a 1 million metric ton per year (tpa) ethylene plant located on Bukom Island, just south of Singapore, as well as a plant that produces monoethylene glycol on Jurong Island, in the west of the country.

CAGP and Vitol had been the final bidders for the assets after shortlisted Chinese companies, including state-owned China National Offshore Oil Corp (CNOOC), withdrew.

Acquiring Shell’s plants in Singapore would provide Chandra Asri with naphtha feedstock for its cracker and allow the company to integrate its petrochemical production with refining, which could improve its efficiency and reduce costs.

“Chandra Asri has been a leading player in the olefins and downstream sector in Indonesia for decades, and has been looking to expand its current portfolio in and out of Indonesia for many years… this foothold in the petrochemical hub of Southeast Asia will help it grow its presence in ASEAN and elevate itself to become a truly regional player,” said Salmon Lee, global director of polyesters at Wood Mackenzie.

Chandra Asri operates Indonesia’s only naphtha cracker, which can produce 900,000 tonnes of ethylene and 490,000 tonnes of propylene per year, basic raw materials that are further processed at the complex into other petrochemical products.