Shell to sell refinery in Singapore

Shell has agreed to sell its refinery and petrochemical assets in Singapore to a joint venture of Chandra Asri Capital and Glencore Asian Holdings, Reuters reported on Wednesday.

The deal involves transferring Shell’s interest in Shell Energy and Chemicals Park Singapore to the joint venture company CAPGC.

The transaction, whose value remains undisclosed, is anticipated to be finalised by the end of 2024, pending regulatory approval.

CAPGC, majority-owned by Chandra Asri Group and minority-owned by Glencore, will take over Shell’s assets, including a refinery capable of processing 237,000 barrels per day (bpd) of oil and a 1-million-metric-ton-per-year (tpy) ethylene plant on Bukom island, as well as a mono-ethylene glycol plant on Jurong island.

This move aligns with Shell CEO Wael Sawan’s strategy to lower the company’s carbon footprint and prioritise profitability.

According to Reuters, Chandra Asri stands to benefit from integrating petrochemical production with refining, enhancing efficiency and reducing costs, while Glencore gains a strategic foothold for its Asian trading operations.