Chandra Asri Set to Acquire Shell Energy and Chemicals Park in Singapore

Chandra Asri Group has entered into a Sale and Purchase Agreement with Shell Singapore Pte. Ltd. to acquire the Shell Energy and Chemicals Park (SECP) in Singapore. This acquisition, conducted through a strategic partnership with Glencore plc, is pending regulatory approval, with completion expected by the end of 2024. The move is designed to enhance Indonesia's energy security and bolster its domestic chemical and infrastructure sectors.

By acquiring SECP, Chandra Asri will secure a reliable supply of critical petroleum and chemical products, including gasoline, jet fuel, ethylene, polyethylene, propylene, monoethylene glycol (MEG), and styrene monomers. These products are essential to support the needs of various industries and manufacturing processes in Indonesia. The acquisition is seen as a key step in Chandra Asri's efforts to strengthen its role in supporting the development of Indonesia's industrial landscape.

Erwin Ciputra, President Director and CEO of Chandra Asri Group, highlighted the significant economic benefits this acquisition will bring to Indonesia. He explained that proceeds from SECP operations will be repatriated to Indonesia and reinvested into the country’s industrial development. This includes creating new job opportunities through the establishment of a company specifically tasked with managing SECP’s operations. Ciputra also highlighted that the transfer of technology and expertise from SECP to Indonesia will enhance operational efficiency and bolster the national industrial value chain.

Chandra Asri's expansion into the ASEAN region aligns with its long-term strategy to grow its global footprint. The acquisition positions the company to capitalize on the projected 4.5% market growth by 2024 in the ASEAN region, which is expected to reach a combined GDP of USD 4.5 trillion by 2030. This move strengthens Indonesia's global standing while fostering innovation through technology and knowledge transfer from SECP to Chandra Asri.

The partnership with Glencore and the acquisition of SECP are expected to boost Chandra Asri’s operational efficiency and competitiveness within the energy and chemicals industry. This collaboration also reinforces Indonesia's role on the global stage and supports national economic growth by ensuring a stable supply of energy and chemical products for various sectors.

As Chandra Asri expands its presence in the region, it is positioning itself to meet the growing demand for energy and chemical products across ASEAN markets. The acquisition of SECP is a strategic move that aligns with the company’s commitment to supporting Indonesia’s industrial and infrastructure development while securing long-term energy supplies for the country.

Chandra Asri Group is Indonesia’s leading provider of chemical and infrastructure solutions, running an integrated petrochemical complex equipped with world-class, state-of-the-art technology and supporting facilities. The company operates the nation’s only Naphtha Cracker, along with plants for Styrene Monomer, Butadiene, MTBE, and Butene-1. These operations are backed by key infrastructure assets, including energy, water, jetty, and tank facilities. Additionally, Chandra Asri is planning the development of a new Chlor-Alkali – Ethylene Dichloride plant.