Shell to divest Singapore Chemicals Park to CAPGC

Shell Singapore Pte Ltd, a subsidiary of Shell plc, has announced an agreement to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd. This major transaction involves transferring all of Shell’s interests in the facility to CAPGC and is expected to be completed by the end of 2024, pending regulatory approval.

The sale is part of Shell’s broader strategy to refine its Chemicals and Products business by focusing on higher value activities with lower emissions, aligning with commitments made during their Capital Markets Day last year. Huibert Vigeveno, director of Shell’s Downstream Renewable and Energy Solutions, highlighted the strategic importance of the sale, noting Shell’s historical contributions to Singapore’s economic growth in the energy sector. He emphasised that despite the divestiture, Shell’s commitment to Singapore as a key regional hub for its marketing and trading operations remains unchanged.

Shell’s decision followed a competitive bid process ensuring a transparent and value-driven sale. Post-sale, all staff currently employed at the Shell Energy and Chemicals Park Singapore will continue their roles under the new ownership of CAPGC, ensuring operational continuity and stability.

This divestiture is aligned with Shell’s global strategy to optimide its asset portfolio to better meet changing market demands and enhance capital discipline. The company is actively shifting focus towards more sustainable and innovative energy solutions, reflecting its broader commitment to supporting Singapore’s ongoing decarbonisation efforts. Shell remains engaged in Singapore through other ventures, including liquefied natural gas supply and the development of electric vehicle charging infrastructure.

In addition to the asset sale, Shell and CAPGC have agreed on crude supply and product off-take agreements that will become effective upon the transaction’s completion, ensuring a continued strategic partnership between the entities.

This move is part of a strategic review initiated by Shell, focusing on enhancing the company’s long-term sustainability and market adaptability by divesting from less strategic assets and investing in growth areas within the evolving energy landscape.