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.
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