Shell Singapore has announced the sale of its entire interest in the Energy and Chemicals Park to CAPGC, a joint venture formed between Glencore’s subsidiary, Glencore Asian Holdings, and Chandra Asri Capital, the unit of Indonesia’s largest integrated petrochemical company, Chandra Asri.

This agreement encompasses commercial contracts and physical assets related to Shell’s integrated refining and chemicals operations on Pulau Bukom and Jurong Island. The completion of the transaction is anticipated by the end of 2024, pending regulatory approval; however, Shell did not disclose the deal’s value.

Huibert Vigeveno, Shell’s director of downstream, renewable, and energy solutions, stated that while Shell has played a significant role in the growth of Singapore’s chemical sector over the decades, this agreement underscores its commitment to reducing emissions and enhancing its chemicals and products business.

“Singapore continues to be crucial for our marketing and trading operations. As the country pursues decarbonization, we are eager to maintain our partnership with Singapore and our regional customers,” Vigeveno remarked.

Shell conducted a competitive bidding process to finalize this agreement. The company confirmed that employees of Shell Energy and Chemicals Park Singapore will retain their jobs under the new ownership, ensuring operational continuity and safety.

Moreover, Shell and CAPGC have established crude supply and product offtake agreements that will take effect once the transaction is finalized.