Communicator

ChemOne Group (Holdings) from Singapore has been added.

#chemone #singapore

Bukom Refinery | Business Today, May 2024

Aster Chemicals and Energy has swiftly become a transformative force in Singapore’s energy and chemicals sector, capitalizing on a historic wave of Western divestments from the city-state. The company’s landmark acquisition of Shell’s integrated refining and petrochemical assets on Bukom and Jurong Islands in 2025—one of the largest such transactions in the region’s history—signals a decisive shift in Singapore’s industrial landscape.

Strategic Expansion Amid Western Disengagement

Aster’s rise is directly linked to the broader strategic retreat of Western energy and chemical majors from Singapore, driven primarily by economic imperatives. Shell’s decision to sell its entire Energy and Chemicals Park—including the 237,000-barrel-per-day Bukom refinery and 1.1 million tonne-per-year naphtha cracker—was largely the result of persistent negative margins, regional oversupply, and the need to reallocate capital to more profitable ventures. Similarly, Chevron Phillips Chemical (CPChem) and its partners exited their Singapore HDPE joint venture (CPSC), selling the 400,000-tonne-per-year plant to Aster in 2025 as part of a broader portfolio optimization strategy. These divestments reflect a wider trend of Western companies withdrawing from mature Asian assets due to challenging market conditions, competitive pressures, and a focus on financial performance.

Building a Regional Powerhouse

Aster, backed by Indonesia’s Chandra Asri (80%) and global commodities giant Glencore (20%), has rapidly consolidated these assets into the Aster Energy and Chemicals Park. The company further expanded its portfolio by acquiring the remaining 50% stake in the Bukom Condensate Splitter Unit from Petrochemical Corporation of Singapore (Private) Limited (PCS), giving it full control over a key feedstock processing facility and boosting its Singapore refining capacity to over 300,000 barrels per day.

This integrated platform, spanning refining, petrochemicals, and advanced polymer production, positions Aster as a new regional leader—able to optimize supply chains, reduce reliance on imports, and support Southeast Asia’s growing demand for fuels and chemicals. The company’s strategy is also expected to deliver economic benefits to Indonesia through improved supply security and repatriation of profits.

A New Chapter for Singapore’s Industry

Aster’s bold moves underscore a pivotal moment for Singapore’s energy and chemicals hub. As Western majors pivot away from local manufacturing, Aster is leveraging these strategic exits to build a vertically integrated, regionally focused powerhouse. The company’s leadership has emphasized its commitment to operational excellence, workforce continuity, and innovation, ensuring Singapore remains a critical node in the global energy and chemicals value chain—even as the ownership and strategic direction shift decisively toward Asian and emerging market players.

#singapore #spc #asterchemicals #shell #chevronphillips #cpchem #exxonmobil #jurong #bukom

#exxonmobil #exxonmobilasiapacific #singapore #refining #petrochemicals #lubricants

#complex1 #complex2 #essential #petrochemicals #pcs #jurong #singapore

#aster #shell #bukom #singapore #condensate #splitter

#aster #singapore #petrochemicals #shell #jurong

#aster #singapore #refinery #shell #bukom

Ownership of CPSC has been changed to Aster.

#chevronphillips #cpsc #singapore #hdpe #aster

SRC refinery aerial view | Credit: SRC Facebook page, 23rd Dec 2022

Chevron's move to divest its 50% stake in the Singapore Refining Company (SRC) signals a pivotal strategic recalibration, driven by evolving pressures in Asia's refining landscape. This decision, confirmed in a June 19, 2025 report from Reuters, aligns with a broader industry trend where Western energy giants are streamlining portfolios amid challenging regional economics. The SRC refinery—a 290,000 bpd joint venture with PetroChina—confronts intensifying structural headwinds, including feedstock cost volatility, regional oversupply, and competition from China's integrated refining-petrochemical complexes. These factors, coupled with shrinking margins across Asian refineries, render Chevron's exit both a targeted portfolio optimization and a response to systemic market shifts.

SRC's operational context underscores systemic headwinds.

SRC’s operational context underscores the depth of structural challenges now facing independent refiners in Asia. While the Jurong Island-based SRC refinery is equipped with advanced units such as residue catalytic crackers and hydrocrackers, it must contend with the formidable scale and integration of China’s new mega-refineries. The economics of feedstock procurement have become increasingly unfavorable: Singapore is wholly reliant on imported crude, while Chinese refiners have gained a significant cost advantage by securing discounted Russian oil in the wake of shifting global trade flows. At the same time, China’s aggressive expansion in petrochemical capacity—evidenced by a 25% surge in ethylene output since 2023—has saturated regional markets with olefins, driving down margins for less-integrated players like SRC. These pressures mirror the earlier exit of CPChem—a Chevron group's subsidiary—from its Singapore HDPE joint venture, sold to Aster in 2024 amid similar margin erosion.

Market intelligence signals deeper regional strains.

Recent ppPLUS analyses (Communications #3754, #3812, #3854, , #3879, #3881 and #3885, ) highlight Asia's refining overcapacity, where utilization rates remain below 75% despite regional demand growth. China's export-oriented model exacerbates this; its chemical exports surged 18% year-on-year in Q1 2025, undercutting Singapore-based producers. Meanwhile, SRC's niche—producing ultra-low-sulfur diesel and high-octane gasoline—faces competition from China's integrated refining-chemical complexes, which achieve cost synergies unavailable to smaller players. Chevron's retreat thus exemplifies a strategic pivot away from assets vulnerable to state-subsidized competition.


SRC Refinery Assets | Market Intelligence by ppPLUS

Potential buyers face complex calculus.

PetroChina, as JV partner, holds first-right options but may resist full ownership given SRC's exposure to Chinese oversupply. Private equity firms could pursue carve-outs of SRC's infrastructure (e.g., cogeneration plants or VLCC-capable berths), though regulatory hurdles loom. Alternatively, regional players like Thailand's PTTEP may leverage SRC for feedstock diversification, albeit amid persistent margin uncertainties. The divestment process will test appetite for assets requiring capital-intensive decarbonization upgrades to remain competitive beyond 2030.

This move underscores a broader industry inflection point.

As Chevron joins ExxonMobil and Shell in scaling back Asian downstream exposure, the region's refining model increasingly favors integrated national champions over international operators. SRC's fate will signal whether niche capabilities can offset structural disadvantages against China's cost-advantaged giants.

#chevron #chevronphillips #exxonmobil #shell #src #singapore #refinery #refining #petrochina #pttep #china #thailand

Chevron Phillips Chemical's Singapore HDPE complex | Credit: Chevron Phillips Chemical Co.

Chevron Phillips Chemical (CPChem) has agreed to sell its entire stake in Chevron Phillips Singapore Chemicals (CPSC), a high-density polyethylene (HDPE) manufacturing joint venture located on Jurong Island, Singapore. The buyer, Aster Chemicals and Energy—a joint venture between Indonesia’s Chandra Asri and global commodities trader Glencore—will acquire CPChem’s 50% interest, alongside stakes held by Singapore’s EDB Investments and Japan’s Sumitomo Chemical. The financial details of the transaction have not been disclosed, and the deal is subject to customary closing conditions.

CPSC’s facility, with an annual capacity of 400,000 metric tons of HDPE, is a significant supplier to regional markets, sourcing ethylene feedstock from local partners. The plant employs around 150 people, who are expected to be offered positions with Aster to support a smooth transition and maintain operational continuity.

This divestment aligns with CPChem’s broader strategy to streamline its global asset base and focus on more integrated, higher-margin operations. Despite the sale, CPChem will maintain its Asia-Pacific headquarters in Singapore, ensuring continued engagement with the region’s markets.

For Aster, this acquisition expands its manufacturing presence in Southeast Asia, complementing its recent purchase of Shell’s refinery and petrochemical assets in Singapore. The addition of CPSC’s HDPE plant is expected to strengthen Aster’s product portfolio and support its regional growth ambitions.

Overall, the transaction reflects ongoing changes in the global petrochemical sector, with companies seeking greater integration and efficiency. For Singapore, it highlights the continued attractiveness of Jurong Island as a site for advanced chemical manufacturing.

#capcg #aster #cpchem #shell #singapore #refinery #petrochemicals #acquisition #martech #hdpe #cpchem #glencore

CAPCG and Aster Chemicals and Energy Singapore have been created.


#aster #singapore #glencore #chandraasri

#sinopec #singapore #sinopecinvestmentholding #sinopecoverseas