Glencore, Chandra Asri near $1 billion deal for Shell's Singapore assets

A consortium led by Glencore, in collaboration with PT Chandra Asri Pacific, is in advanced negotiations to acquire Shell's oil refinery and petrochemical units in Singapore. The deal, valued at approximately $1 billion, is poised for an announcement in the coming weeks pending the finalization of transaction details. 

The assets encompass a refinery with a capacity of 237,000 bpd and a world-class ethylene plant on Bukom Island, alongside a mono-ethylene glycol (MEG) facility on Jurong Island. PT Chandra Asri is scheduled to assume operational control and majority ownership under the terms of the proposed agreement, with Glencore holding a non-operating minority interest.

This move underscores Glencore's strategic expansion into the petrochemical sector, leveraging its partnership with PT Chandra Asri to evaluate and potentially secure these lucrative assets in Singapore's thriving energy market.

Shell started a review of its energy and chemical assets in Bukom and Jurong Island in 2023. According to industry experts, the Bukom facility is ‘the weakest integrated petrochemical site in Shell’s portfolio’. 

Shell operates an ethylene cracker in Bukom Island with an annual capacity of 960,000 tons/year and propylene production of 450,000 tons/year. Meanwhile, the company’s MEG plant in Jurong Island is capable of producing 750,000 tons/year.

Shell has two joint ventures in Singapore. The company together with Qatar Petroleum jointly holds 50% stakes in Petrochemical Corp. of Singapore (PCS) and 30% stakes in The Polyolefin Co. (TPC).