$1 billion suggested as price for Singapore downstream deal with Chandra Asri and Glencore

UK supermajor Shell has completed the sale of its Energy and Chemicals Park in Singapore to CAPGC, a joint venture between Chandra Asri Capital and Glencore.

CAPGC last May was confirmed as the winner after a competitive bid process. No figure has been placed on the deal, but industry sources had suggested a price tag of around US$1 billion, Bloomberg earlier reported.

The divestment by subsidiary Shell Singapore (SSPL) is in line with the parent’s ongoing efforts to high-grade its chemicals and products business. Shell remains committed to Singapore with its role as an important regional hub for Shell’s marketing and trading business.

The transaction was done through the sale of shares in Aster Chemicals and Energy, which is incorporated in Singapore and a fully owned subsidiary of SSPL.

Staff in Shell Energy and Chemicals Park Singapore will continue their employment with Aster Chemicals & Energy under the new ownership, providing continuity for staff and contributing to ongoing operational reliability and safety, Shell confirmed on Tuesday.

The industry heavyweight is continuing to support Singapore’s energy needs through its businesses across a range of energy products, including liquefied natural gas supply and trading. Shell also continues to grow its retail network while investing in electric vehicle charging infrastructure as the city state transitions.

CAPGC is a joint venture that is majority-owned and operated by Chandra Asri Group and minority-owned by Glencore through their respective subsidiary companies.