Oil & Gas

Today, on the 8th of May 2024, Shell Singapore Pte Ltd, a subsidiary of Shell plc, has agreed to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd. This transaction will transfer all of Shell’s interests in the Shell Energy and Chemicals Park Singapore to CAPGC.

Huibert Vigeveno, Shell’s Downstream, Renewable, and Energy Solutions Director, stated, “This agreement marks a significant step in Shell’s ongoing efforts to high-grade our Chemicals and Products business and is a testament to our commitment to deliver more value with fewer emissions, as outlined at our Capital Markets Day last year.”

Shell conducted 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, ensuring continuity and contributing to ongoing operational reliability and safety.

Subject to regulatory approval, the transaction is expected to be completed by the end of 2024.

The Shell Energy and Chemicals Park Singapore includes its integrated refining and chemicals assets on Pulau Bukom and Jurong Island. The Pulau Bukom assets comprise a 237,000 barrels-per-day refinery and a 1.1 million tonnes-a-year ethylene cracker, Singapore’s first refinery established in 1961. Shell Jurong Island, spanning more than 60 hectares, manufactures petrochemicals including ethylene oxide, ethoxylates, styrene monomer, and propylene oxide, serving as Shell’s largest petrochemical production and export center in the Asia Pacific region.

Shell is divesting 100% of its interests in its Energy and Chemicals Park in Singapore, including physical assets and commercial contracts. This move follows Shell’s strategic review initiated in June 2023 to high-grade its Chemicals and Products portfolio in response to changing market conditions and enhanced capital discipline.

After completion, all employees dedicated to supporting the Shell Energy and Chemicals Park Singapore will retain their employment with CAPGC. Additionally, Shell and CAPGC have signed crude supply and product offtake agreements that will take effect after completion.

Singapore’s role as a trading and marketing hub for serving Shell’s customers in the region remains significant. Shell continues to support Singapore’s energy needs through LNG supply and trading and is investing in electric vehicle charging infrastructure in the country.

In March 2024, the Singapore government announced a partnership with a consortium formed by Shell and ExxonMobil to study the feasibility of a cross-border carbon capture and storage project.

CAPGC Pte. Ltd. (“CAPGC”) is a joint venture majority-owned and operated by Chandra Asri Group, Indonesia’s leading chemical and infrastructure solutions company, and minority-owned by Glencore, one of the world’s largest global diversified natural resource companies.