Shell sells Singapore refinery to Glencore joint venture

8th May 2024 14:29

(Sharecast News) - Energy giant Shell has announced that it is selling its interest in Singapore's Energy and Chemicals Park, the company's largest petrochemical production and export centre in Asia Pacific.

After a "competitive bid process", Shell Singapore is offloading the integrated refining and chemicals assets on Pulau Bukom and Jurong Island to CAPGE, a joint venture company between Indonesia's Chandra Asri Capital and Glencore Asian Holdings, in which UK-listed Glencore owns a minority stake.

The sale, which includes a 237,000 barrels-per-day refinery and a 1.1 million tonnes-a-year ethylene cracker as well as 60 hectares for petrochemical production, was a result of a strategic review announced by Shell last June.

The assets were put under review "in response to the ongoing high-grading of Shell Group's Chemicals and Products portfolio, changing market conditions and enhanced capital discipline", Shell 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," said Huibert Vigeveno, the director of Shell's Downstream, Renewable and Energy Solutions division.

"We are proud of our history at Bukom and Jurong Island and our contributions to the economic growth of Singapore in this sector in the past decades. 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."

Shell shares were down 0.6% at 2,878.5p by 1451 BST.