Shell Plc (SHEL) announced on Wednesday, 8 May 2024, that its subsidiary, Shell Singapore Pte Ltd., has agreed to sell its Energy and Chemicals Park in Singapore to the CAPGC joint venture between Glencore Asian Holdings, a commodity trader, and Chandra Asri Capital Pte. Ltd. (TPIA.JK), a chemical and infrastructure firm.
Shell To Sell Energy And Chemicals Park In Singapore
In the terms of this deal, all of Shell’s Energy and Chemicals Park Singapore assets will go to CAPGC. According to Bloomberg, this confirms the earlier rumours, but to date, no financial details about the agreement have been divulged.
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Based on the opinion of those familiar with the matter, the selling price may be as much as $1bn. However, Jefferies Financial Group Inc. (JEF) believes that the deal value will be between $300m and $500m. Bloomberg quoted a note from a Jefferies analyst, Giacomo Romeo, who indicated:
The lack of disclosure of the monetary consideration for the deal suggest that the proceeds should be limited.
These energy and chemical assets comprise those on Pulau Bukom and Jurong Island. The first site’s assets include a refinery that produces 237,000 barrels a day and 1.1 million annual tonnes of ethylene cracker. Shell Jurong Island consists of more than 60 hectares and produces petrochemicals such as ethylene and propylene oxide. Huibert Vigeveno, Shell’s Downstream, Renewable and Energy Solutions director, commented:
This agreement marks a significant step in Shell’s ongoing efforts to high-grade our Chemicals and Products business, and is a testament to our commitment to deliver more value with less emissions, as outlined at our Capital Markets Day last year.
