Shell has announced the sale of its refinery and petrochemical assets in Singapore to a joint venture between Indonesian chemicals firm Chandra Asri and Swiss miner and commodities trader Glencore. The transaction includes Shell’s refinery capable of processing 237,000 barrels per day of oil and a 1-million-metric-ton-per-year ethylene plant on Bukom Island, as well as a plant that produces mono-ethylene glycol on Jurong Island.
The deal is part of Shell’s strategy to reduce its carbon footprint and focus on its most profitable businesses. The acquisition will provide Chandra Asri with naphtha feedstock for its cracker and allow the company to integrate its petrochemical production with refining, potentially improving efficiency and reducing costs. For Glencore, the assets will give the global trader a physical foothold for its trading operations in Asia.
The transaction is expected to be completed by the end of 2024, subject to regulatory approval. The companies did not disclose the value of the deal.