10 May 2024
Agreement “a significant step” in efforts to “high-grade” chemicals and products business
Singapore – Shell has reached an agreement to sell its 'energy and chemicals park' in Singapore to CAPGC Pte. Ltd, a joint venture between Chandra Asri Capital and Glencore Asian Holdings Pte.
The agreement marks “a significant step” in Shell’s ongoing efforts to “high-grade” its chemicals and products business, said Huibert Vigeveno Shell’s downstream, renewable and energy solutions director.
Subject to regulatory approval, the transaction is expected to complete by the end of 2024.
Shell announced the move last year as part of a wider strategy to “create more value with less emissions.”
The group’s operations in Singapore are located on the two islands of Pulau Bukom and Jurong and include a 155 kilotonnes per annum (ktpa) butadiene extraction unit.
Shell is also currently building its first “pyrolysis oil upgrader unit” at Bukom, which was slated for start-up later last year.
With the planned capacity of 50ktpa, the unit processes pyrolysis oil, made from waste polymer into feedstock for the ethylene cracker complex.
According to Shell, the pyrolysis oil will be used to produce 'circular' chemicals for use in a wide range of products, including tires.
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