PT Chandra Asri Pacific Tbk (TPIA) has finalized its acquisition of Shell Singapore Pte. Ltd.’s ownership in Shell Energy and Chemicals Park (SECP). The facility, now renamed Aster Energy and Chemicals Park, is located in Singapore.

According to Suryandi, Director of HR & Corporate Affairs at Chandra Asri Pacific, the acquisition aligns with the company’s ambition to become a leading energy and chemical player in Southeast Asia.

Aster Energy Offers Access to Dynamic Regional Markets

Suryandi stated that Southeast Asia is a high-demand region with increasing consumption of energy and chemicals.

“Aster provides direct access to one of the world’s most dynamic markets,” he said during Chandra Asri Pacific’s virtual analyst and media briefing on Tuesday, April 8, 2025.

He noted that Southeast Asia remains a net importer of gasoline, with Singapore being the only exporter. This positions the company to meet growing regional demand.

Rising Demand for Jet Fuel, Diesel, and Petrochemicals

Suryandi said demand for jet fuel and gasoil is projected to continue rising across Southeast Asia, despite the region currently being a net exporter.

He added that demand is expected to exceed supply after 2025, making Aster a critical growth asset.

“This region is a central hub for demand of chemical and fuel products derived from petrochemicals,” he said.

He also pointed out that demand for essential chemicals—such as ethylene, propylene, and butadiene—is driven by fast-growing industries, including manufacturing, automotive, packaging, and construction.

Chandra Asri Leverages Integration with Glencore and Sietco

Suryandi explained that Chandra Asri intends to build Aster by combining Aster’s infrastructure with the capabilities of Chandra Asri Group and Glencore’s global trading expertise.

“We will unlock more value by boosting market competitiveness, optimizing the supply chain, and driving long-term growth,” he said.

Three Strategic Initiatives to Maximize Value

Suryandi outlined three joint initiatives to realize the company's goals.

First, the company will optimize its crude basket by sourcing from 31 types of crude oil provided by Glencore and 9 types from Sietco.

Second, offtake synergies with Glencore, Sietco, and Chandra Asri Group will support commercial resilience by securing stable markets for gasoline, diesel, jet fuel, and fuel oil.

Third, the integration of Chandra Asri’s petrochemical expertise with Aster’s production capacity will maximize value across the supply chain, from naphtha procurement to petrochemical manufacturing.

“Aster is a fully integrated asset located in a strategic hub and managed by an outstanding team,” he said.

Aster’s Infrastructure Supports Long-Term Growth

Aster operates an oil refinery on Pulau Bukom with a capacity of 237,000 barrels per day and an ethylene cracker (ECC) facility with a capacity of 1.1 million tons per year.

On Pulau Jurong, Aster manages the production of downstream petrochemicals, including polyol, monoethylene glycol (MEG), and high-purity ethylene oxide (HPEO).

The site includes a 174 MW cogeneration power plant, 192 storage tanks with a total capacity of 3.2 million cubic meters, 60 hectares of debt-free land, 10 water treatment facilities, 13 jetties, and 20 underwater pipelines with 7 routes to external terminals.

Strong Positioning in Singapore’s Energy Ecosystem

Aster contributes 20% to 30% of Singapore’s refining and ethylene cracker capacity.

The facility also plays a key role as a major supplier and infrastructure manager in Singapore’s energy and chemical sectors.

“Aster’s location is highly strategic for ensuring optimal cost efficiency and market connectivity,” Suryandi said.

PHOTO: TRENASIA/PANJIASMORO

This article was created with AI assistance.