PT Chandra Asri Pacific, Indonesia’s leading petrochemical company, together with its partner Glencore Plc, has officially acquired the Shell Energy and Chemicals Park (SECP) in Singapore, marking a significant expansion in their global operations.
This acquisition is part of Chandra Asri Group’s strategy to enhance its footprint in the global chemical sector, supporting the Indonesian government’s energy resilience initiatives and meeting the rising demand for chemical products.
Chandra Asri and Glencore signed a Purchase Agreement with Shell Singapore Pte Ltd to acquire all its ownership stakes in SECP. The deal is now pending regulatory approval, expected by the end of the year.
Through the acquisition of SECP, one of the largest oil refineries and trading hubs globally, Chandra Asri Group aims to supply petroleum products including gasoline, jet fuel, diesel, and bitumen to support various industries across Indonesia.
The acquisition is set to address the domestic shortage of key chemical products such as mono-ethylene glycol (MEG), polyols, and ethylene monomers, vital for the manufacturing sector in Indonesia, reducing reliance on foreign entities.
The proceeds from SECP operations will be repatriated and reinvested into Indonesia’s petrochemical industry, promising to enhance the economic landscape and create job opportunities through the establishment of a new company to manage SECP’s operational activities.
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This partnership is expected to facilitate a transfer of technology and best practices between SECP’s advanced operational capabilities and Chandra Asri’s extensive manufacturing experience, further strengthened by collaboration with Glencore.
The acquisition of the Shell Energy and Chemicals Park by Chandra Asri and Glencore is poised to significantly impact Indonesia’s chemical supply chain and manufacturing capabilities, fostering economic growth and technological advancement in the region.
Chandra Asri’s acquisition of the Singapore-based Shell Energy and Chemicals Park, in collaboration with Glencore, represents a strategic move to enhance Indonesia’s petrochemical capabilities and reduce dependence on international suppliers, ensuring a more resilient national economy.
Sources: Media Indonesia, Kompas (2024)
