Shell Singapore, a subsidiary of Shell, has agreed to divest its Energy and Chemicals Park in Singapore to CAPGC, a joint venture (JV) between Indonesian chemicals company Chandra Asri and Swiss miner and commodities trader Glencore.
The sale includes the transfer of all of Shell’s interests in the park, including physical assets and commercial contracts.
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Shell’s Energy and Chemicals Park Singapore includes integrated refining and chemicals facilities on Pulau Bukom and Jurong Island.
The Pulau Bukom site comprises a refinery with a capacity of 237,000 barrels per day and an ethylene cracker capable of producing 1.1 million tonnes annually.
Subject to regulatory approvals, the transaction is expected to be completed by the end of 2024.
The sale of these assets by Shell is a component of a strategic assessment that was revealed in June 2023 and aims to simplify the company’s chemicals and products portfolio in light of changing market dynamics and a capital efficiency focus.
Employees at the Energy and Chemicals Park Singapore will continue their roles under the new ownership of CAPGC.
Shell downstream, renewable and energy solutions director Huibert Vigeveno said: “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 less emissions, as outlined at our Capital Markets Day last year.
“Our commitment to Singapore remains steadfast and its importance as a regional hub for our marketing and trading business remains important. As Singapore continues to decarbonise, Shell looks forward to a continued partnership with the country, and with our customers in the region.”
Additionally, Shell and CAPGC have agreed on crude supply and product offtake arrangements, effective upon the deal’s completion.
Recently, Shell announced plans to offload its downstream operations in South Africa and is in talks to sell its Malaysian gas station business to Saudi Aramco.
