Shell PLC, through its subsidiary Shell Singapore Pte Ltd, has entered into an agreement to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd. The sale includes all of Shell's interests in the park, comprising integrated refining and chemicals assets on Pulau Bukom and Jurong Island. The transaction, subject to regulatory approval, is expected to be completed by the end of 2024.
The sale is part of Shell's strategic review of its Energy and Chemicals Park assets, aimed at high-grading its Chemicals and Products business and enhancing capital discipline. The company's commitment to Singapore remains strong, with plans to continue its partnership with the country and its customers in the region. Employees at the Energy and Chemicals Park Singapore will transition to CAPGC, ensuring continuity and contributing to ongoing operational reliability and safety.
The Pulau Bukom assets, which include a refinery and an ethylene cracker, were Singapore's first refinery in 1961. On the other hand, Shell Jurong Island is the company's largest petrochemical production and export center in the Asia Pacific region. Following the completion of the sale, all employees providing dedicated support to the park will retain their employment with CAPGC. Additionally, Shell and CAPGC have signed crude supply and products offtake agreements that will come into effect after the completion of the transaction.
Shell's commitment to Singapore extends beyond this sale, as the company continues to support the country's energy needs through Liquefied Natural Gas supply and trading. Moreover, Shell is investing in electric vehicle charging infrastructure in Singapore. The company's partnership with the Singapore government and ExxonMobil to study the feasibility of a cross-border carbon capture and storage project further demonstrates its dedication to sustainable energy solutions.
CAPGC Pte. Ltd., the acquiring entity, is a joint venture majority-owned by Chandra Asri Group, Indonesia's leading chemical and infrastructure solutions company, and minority-owned by Glencore, one of the world's largest global diversified natural resource companies. This acquisition aligns with Chandra Asri's and Glencore's strategic objectives and expands their presence in the region.
In conclusion, the sale of Shell's Energy and Chemicals Park in Singapore to CAPGC represents a significant step in the company's strategic initiatives to optimize its portfolio and enhance its focus on sustainable energy solutions. The transaction underscores Shell's commitment to Singapore and its ongoing support for the country's energy needs and sustainability efforts.