Shell to sell Singapore oil refinery, chemicals assets to Glencore joint venture

SHELL Singapore is selling all its interest in Energy and Chemicals Park to CAPGC, a joint venture between commodity trader Glencore’s unit Glencore Asian Holdings and Chandra Asri Capital. The latter is a unit of Indonesia’s largest integrated petrochemical company, Chandra Asri.

Shell’s Singapore subsidiary’s total interest in the agreement with CAPGC includes both commercial contracts and physical assets that comprises its integrated refining and chemicals assets on Pulau Bukom and Jurong Island.

The transaction is expected to be completed by the end of 2024, subject to regulatory approval, Shell said on Wednesday (May 8). The company’s spokesperson declined to disclose the deal’s value.

Shell’s downstream, renewable and energy solutions director Huibert Vigeveno noted that while the group’s presence at Bukom and Jurong Island marked its contributions to Singapore’s economic growth in chemicals sector in the past decades, the agreement shows its commitment to reduce emissions and high-grade its chemicals and products business.

“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 decarbonise, Shell looks forward to a continued partnership with the country, and with our customers in the region,” Vigeveno added.

Shell said it ran a competitive bid process to reach this agreement. “Staff in Shell Energy and Chemicals Park Singapore will continue their employment with CAPGC under the new ownership, providing continuity for staff and contributing to ongoing operational reliability and safety,” it added.

Shell and CAPGC have also signed crude supply and products offtake agreements that will come into effect following the completion of the transaction.

CAPGC is majority-owned and operated by Chandra Asri Group, and minority-owned by Glencore through their respective subsidiary companies.