Shell Completes Singapore Refinery Sale to Chandra Asri-Glencore JV

Shell has recently completed the sale of its Singapore refinery and refining assets to a joint venture involving Chandra Asri and Glencore. Trade sources indicate that the new owners have already begun purchasing feedstock. This move follows Shell's announcement earlier in the year regarding the sale of its Bukom and Jurong islands facility, which dates back to 1961. The deal positions Chandra Asri, the majority owner of the joint venture, as one of Southeast Asia's largest petrochemical companies. However, the financial terms of the deal, which were initially scheduled to close by the end of 2024, have not been disclosed.

A view shows a logo of Shell petrol station in South East London, Britain, February 2, 2023.

Shell confirmed that its staff at the site will continue to operate under the new venture, Aster Chemicals and Energy Pte Ltd. Office-based employees have already relocated to new locations under the new ownership. Shell declined to comment on any staffing adjustments. Additionally, Chandra Asri has already started purchasing naphtha for Singapore arrivals, beginning in March 2023, as it now handles feedstock procurement for Aster.

Shell's Jurong Island chemicals site imported approximately 1.5 million tons of naphtha in 2023 and 2024, according to data from Kpler, a shipping tracking service. Meanwhile, Glencore has made several crude purchases for May and June arrivals into Singapore, including from Canada and Kazakhstan. Both Chandra Asri and Glencore have not yet responded to Reuters' query for comment, while Shell has signed crude supply and product offtake agreements that will become effective after the sale is finalized.

This concludes the latest update on Shell's refinery sale and related developments.