Chandra Asri Group And Glencore To Acquire Shell Energy And Chemical Park Assets In Singapore

Conglomerate Prajogo Pangestu. (Photo: Doc. Chandra Asri Group)

JAKARTA - PT Chandra Asri Pacific Tbk (Chandra Asri Group), a chemical and infrastructure solutions company in Indonesia, and Glencore plc (Glencore), one of the world's leading natural resource companies, has signed a Sales and Purchase Agreement with Shell Singapore Pte. Ltd (SSPL) to acquire all of its holdings in Shell Energy and Chemicals Park Singapore (SECP).

After going through a competitive auction process, CAPGC Pte. Ltd. (CAPGC), a joint venture that is majority owned and operated by Chandra Asri Group and minority by Glencore through its respective subsidiaries, agreed to acquire SECP consisting of crude oil refineries with processing capacity of 237,000 barrels per day, ethylene crackers with a capacity of 1.1 million metric tons per year on Bukom Island and downstream chemical assets on Jurong Island.

President Director and CEO of Chandra Asri Group, Erwin Ciputra said, this acquisition is a success of our programmed M&A strategy to become a leading chemical and infrastructure player in this area, and will further strengthen the company's business resilience.

"The integration of new energy and chemical platforms on Bukom and Jurong Islands, Singapore, with our established presence in Cilegon, Indonesia, will encourage the expansion of product offerings and service improvements, allowing us to seize new opportunities in the growing Southeast Asian market. We are delighted to partner with Glencore, and are excited to welcome SECP talent to enrich our shared capabilities, as a positive end result of a very competitive auction process," he explained in a written statement, Wednesday, May 8.

Glencore Singapore Managing Director, Quek Chin Thean said his party was delighted to announce this acquisition and was very confident in the success of the company's joint venture partnership with the Chandra Asri Group at CAPGC. SECP is a major asset in Southeast Asia, located uniquely and strategically in Singapore, which is Asia's leading energy trading center.

"The integrated refinery and chemical complex is a sophisticated operation carried out by a very talented and professional workforce, and plays an important role in opening up new opportunities to remain competitive amid the energy transition, planning long-term growth in the future, expanding and extending our offerings, and providing extraordinary value to all of our stakeholders. This transaction is still awaiting regulatory approval and is expected to be completed by the end of 2024," he explained.

Chandra Asri Group is the only company in Indonesia that operates the Naphta Cracker, Styrene Monomer, Blindiene, MTBE and Butene-1 factories. Thanks to the persistence and hard work of Chandra Asri Group founder, Mr. Prajogo Pangestu, this company can last more than 31 years and continues to grow and develop and is currently building the Chlor Alkali factory - Ethylene Dycloride (ECC) to support downstreaming in Indonesia.

In addition to focusing on business growth, Chandra Asri Group is also committed to developing sustainable industries by advancing attention to the environment through ESG programs, namely operational efficiency, green business development, implementation of renewable energy, and circular economic principles.