Jakarta. Chandra Asri Pacific Tbk (Chandra Asri Group), the leading chemical and infrastructure solutions company in Indonesia, and Glencore plc (Glencore), one of the world’s leading natural resources companies, have entered into a Sales and Purchase Agreement with Shell Singapore Pte. Ltd. (SSPL) to acquire all its interest in the Shell Energy and Chemicals Park Singapore  (SECP).  

Following a competitive auction process, CAPGC Pte. Ltd. (CAPGC), a joint venture that is majority-owned and operated by Chandra Asri Group and minority-owned by Glencore through their respective subsidiary companies, agreed to acquire SECP which comprises a refinery with a processing capacity of  237,000 barrels per day of crude oil and 1.1 million metric ton per annum of ethylene cracker on Bukom island, and downstream chemical assets on Jurong Island.  

“This acquisition is another successful outcome of our programmatic M&A strategy to become a leading chemical and infrastructure player in the region, and further strengthen the resilience of our business," said Erwin Ciputra,  President Director and CEO of Chandra Asri Group.

“This integration of our new energy and chemicals platform in Bukom and Jurong Island, Singapore, with our established presence in Cilegon, Indonesia, will drive expansion of product offerings and service enhancements, enabling us to capture new opportunities in growing Southeast Asian markets. We are delighted to be partnering with Glencore, and eagerly welcome the SECP talent to enrich our joint capabilities, as a very positive conclusion to a highly competitive auction process,” he added. 

Managing Director of Glencore Singapore, Quek Chin Thean said: “We are delighted to announce this acquisition and firmly believe in the success of our joint venture partnership with Chandra Asri Group in CAPGC. SECP is a prime asset in Southeast Asia, uniquely and strategically located in Singapore which is the pre-eminent energy trading hub in Asia. The integrated refinery and chemicals complex is a sophisticated operation run by a highly talented and professional workforce, and it plays a critical role in serving the essential and growing energy needs of consumers in Asia. As a team, we are very excited  and confident to unlock new opportunities to remain competitive amidst the energy transition, plan for  future long-term growth, expand and extend our offering, and deliver exceptional value for all our  stakeholders.” 

The transaction is subject to regulatory approval and is expected to be completed by the end of 2024.

Chandra Asri Group is the only Indonesian company that operates naphtha cracker, styrene monomer, butadiene, MTBE, and Butene-1 factories. Chandra Asri Group's founder Prajogo Pangestu's persistence has helped the company to survive over 31 years and continue to grow. The company is building a chlor alkali-ethylene dichloride (ECC) factory to support Indonesia's domestic processing initiative.

Apart from focusing on business growth, Chandra Asri Group is committed to developing a sustainable industry by advancing attention to the environment through ESG programs, namely operational efficiency, green business development, renewable energy use, and circular economy principles.