A joint venture led by Indonesian chemical company Chandra Asri has agreed to buy Shell’s fuels and petrochemical refining complex in Singapore – facilities that include an API Group I base oil plant.
The joint venture, CAPGC Pte., was formed with Swiss metals and energy giant Glencore. A news release by Chandra Asri said it holds a majority stake in the partnership – which apparently was created for this acquisition – but did not specify the exact size.
Shell refers to the complex that it is selling as its Energy and Chemicals Park. It spreads over two islands to the south of Singapore’s main island, Jurong Island and Pulau Bukom. The Pulao Bukom facilities include a refinery that can process 237,000 barrels per day of crude oil and which in turn includes a 386,000 metric ton per year base oil plant. On the same island is a 1.1 million t/y ethylene cracker.
The facilities Jurong Island cover 60 hectares and produce chemicals such as ethylene oxide, ethoxylates, styrene monomer and propylene oxide.
The companies did not disclose the price of the sale, which must pass review by regulators.
Shell announced a year ago that it was putting the complex up for sale as part of its ongoing efforts to “high-grade” its chemicals business and its newer efforts to reduce the company’s carbon footprint.
The news release said the sale includes off-take agreements covering several materials, but it did not say if those cover base oils.
Shell had for a time considered upgrading the base oil plant to make Group II oils but dropped that idea before putting the complex up for sale.