Shell wraps up sale of chemicals park in Singapore

Indonesia’s Chandra Asri Group and commodities giant Glencore have finalised the acquisition of Shell’s Energy and Chemicals Park in Singapore, in a move that expands their presence in Asia’s energy and chemicals sector.

The transaction, announced by the companies on April 1, was completed through the purchase of shares in Aster Chemicals and Energy, a wholly-owned subsidiary of Shell Singapore. It will see the facility continue operations under the new ownership. The joint acquisition was made via CAPGC, a venture between Chandra Asri Capital, part of Chandra Asri Group, and Glencore Asian Holdings.

The integrated site, now renamed Aster Energy and Chemicals Park, includes a 237,000 barrel per day (bpd) refinery on Bukom Island, a 1.1mn tonne per year (tpy) ethylene cracker, and downstream petrochemical assets on Jurong Island.

Shell, which said the divestment aligns with its strategy to high-grade its chemicals and products portfolio, confirmed that staff at the facility will remain with Aster under the new ownership. Shell will retain a significant presence in Singapore, continuing to operate in marketing, LNG supply and EV charging infrastructure.

Chandra Asri president director and CEO Erwin Ciputra said the deal marks a milestone in enhancing Indonesia’s energy resilience and supporting domestic chemical industry growth. “By expanding our strategic footprint through Aster, we are securing vital resources and contributing to Indonesia’s long-term economic stability,” he said.

Glencore Singapore managing director Quek Chin Thean said the acquisition supports the company’s strategy to invest in high-potential assets in key markets.

Chandra Asri said Aster would play a vital role in supplying refinery and petrochemical products to Indonesia, helping bridge supply gaps in chemicals such as MEG, polyols and monomers. The company plans to optimise trade flows between Indonesia and Singapore, improve supply chain efficiency, and support Indonesia’s energy security by reducing reliance on imports.

The transaction is also expected to bring economic benefits to Indonesia, including the repatriation of profits and the creation of around 200 new jobs through a local company set up to manage back-end operations.

Shell noted its continued commitment to Singapore, with the country remaining an important regional hub for its marketing and trading activities.