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Shell Singapore Pte Ltd has officially completed the sale of its refining and petrochemical operations in Bukom Island and Jurong Island to CAPGC Pte Ltd, a joint venture between Indonesia-based PT Chandra Asri Pacific Tbk and Glencore Asian Holdings Pte Ltd.

The divestment, initially announced in May 2024, aligns with Shell’s strategic objective to achieve net-zero emissions across its global operations by 2050. While the financial terms of the transaction remain undisclosed, the assets have been rebranded as Aster Energy and Chemicals Park (AECP).

What’s being sold? 

The sale includes a dual-site facility spanning Bukom Island and Jurong Island, linked by a 5 km subsea pipeline. The Bukom refinery complex features multiple crude distillation units with a total processing capacity of 237,000 barrels per day (bpd) and a 1 million tonnes per year steam cracker. Meanwhile, the Jurong Island site houses derivative petrochemical units producing key feedstocks such as monoethylene glycol and styrene, essential for the polyester and plastics industries.

The buyers

CAPGC Pte Ltd is an 80:20 joint venture between PT Chandra Asri Pacific Tbk and Glencore. Chandra Asri is Indonesia’s largest petrochemical producer, operating a steam cracker in Cilegon with an annual capacity of 900,000 tonnes of ethylene and 490,000 tonnes of propylene, alongside polyolefin units exceeding 1.3 million tonnes per year. Glencore, a global commodities giant, brings its trading and supply chain expertise to the partnership.

This acquisition marks a significant expansion for Chandra Asri and reinforces Glencore’s position in the petrochemical sector.