Chandra Asri Completes Acquisition of Shell's Singapore Petrochemical Assets

JAKARTA, investortrust.id — Indonesia-based petrochemical group PT Chandra Asri Pacific Tbk, controlled by tycoon Prajogo Pangestu, has completed the acquisition of Shell’s integrated petrochemical assets in Singapore, marking a major step in expanding its regional footprint in the energy and chemical sectors.

The acquisition, carried out jointly with global commodity trader Glencore through their joint venture CAPGC Pte Ltd, involves a 100% share purchase of Aster Chemicals and Energy Pte Ltd, a Shell Singapore Pte Ltd subsidiary. The transaction secures ownership of the Shell Energy and Chemicals Park (SECP), now renamed Aster Energy and Chemicals Park.

The park encompasses a refinery with a crude processing capacity of 237,000 barrels per day on Bukom Island and an ethylene cracker with 1.1 million metric tons of annual capacity, along with downstream chemical facilities on Jurong Island. These assets will continue operations under the new entity, Aster Chemicals and Energy.

President Director and CEO of Chandra Asri Group Erwin Ciputra emphasized the acquisition as a strategic milestone in bolstering Indonesia's energy security and supporting the domestic chemical industry's growth.

“We are ensuring the availability of vital resources for the country, contributing to long-term economic stability and global competitiveness. As a growth partner, we aim to collaborate closely with our partners to foster innovation, operational excellence, and sustainable development in the years ahead,” Ciputra stated in a release to the Indonesia Stock Exchange on Wednesday, April 2, 2025.

Glencore Singapore Managing Director Quek Chin Thean noted the deal aligns with Glencore’s strategy to expand investment in high-potential assets and deepen presence in key markets.

“We remain committed to driving innovation, sustainability, and operational excellence across our business activities,” he said.

Executives from both companies view the acquisition as a reinforcement of Chandra Asri’s commitment to supporting Indonesia’s energy resilience and meeting rising demand for petrochemical products. Aster is expected to serve as a key supplier of refinery and petrochemical outputs.

To address domestic demand, Chandra Asri plans to utilize Aster’s world-class refining capacity and trading hub capabilities to secure local supplies of critical petroleum products and close the supply gap for major chemicals such as monoethylene glycol (MEG), polyols, and various monomers. This move is intended to reduce Indonesia’s dependency on chemical imports.

“By leveraging Aster’s integrated facilities, we will fill the gap in essential chemicals and enhance Indonesia’s energy independence,” Ciputra added.

The integration of Indonesia-Singapore trade will also be a central feature of the synergy. The partnership will enhance supply chain efficiency through joint procurement of raw materials such as naphtha and cross-selling of refinery outputs like pygas and methyl tert-butyl ether (MTBE), as well as petrochemical products including ethylene, propylene, and raffinate-1.

The economic impact of the acquisition extends beyond supply chains. Repatriated profits from Aster will be reinvested to expand Chandra Asri’s operations and contribute to Indonesia’s balance of payments. Furthermore, the deal is expected to create 200 new jobs in Indonesia through a backend operations company established to manage the acquired assets.

The strategic collaboration with Glencore is also set to accelerate innovation, knowledge exchange, and technology transfer, enhancing both companies’ capabilities. By adopting best-in-class operational standards, the partnership aims to elevate Indonesia’s standing as a competitive player in advanced industrial practices.