Chandra Asri Accelerates Southeast Asia Expansion With Shell Singapore Acquisition and Strategic Partnerships

Indonesia’s leading petrochemical company, PT Chandra Asri Pacific Tbk, is boldly expanding its footprint across Southeast Asia with a major acquisition and a series of strategic partnerships aimed at boosting regional competitiveness and energy infrastructure.

Major Acquisition: Shell’s Energy and Chemicals Park Singapore

In April 2025, Chandra Asri, through a joint venture with commodities trader Glencore, completed the acquisition of Shell’s Energy and Chemicals Park Singapore (SECP). This milestone deal includes:

• A 237,000 barrels-per-day refinery on Bukom Island
• A 1.1 million tonnes-per-annum ethylene cracker
• Downstream chemical production assets on Jurong Island

The assets are now managed under the JV entity CAPGC Pte. Ltd., with Chandra Asri holding the majority stake. The value of the deal, while not officially disclosed, is estimated between USD $300 million and $500 million, according to industry analysts.

The facilities offer deep integration between refining and petrochemical operations, enabling Chandra Asri to diversify product offerings and increase ethylene output significantly.

Strategic Vision and Operational Integration

Chandra Asri’s goal is to become the leading chemical and infrastructure solutions provider in Southeast Asia. The SECP acquisition brings several advantages:

• Scalability: The new assets nearly double the company’s total production capacity.
• Technology Transfer: Chandra Asri can now access cutting-edge refining and cracker technologies.
• Regional Hub Creation: Singapore’s strategic location positions the company to serve regional customers more effectively.

These assets are being integrated with Chandra Asri’s operations in Cilegon, Banten, Indonesia, where it is building a second world-scale petrochemical complex (CAP2), expected to start in 2027 with an estimated investment of over USD $5 billion.

Strategic Partnerships and Funding Boost

In addition to the acquisition, Chandra Asri secured a USD $194 million equity investment from Thailand’s Electricity Generating Public Company Limited (EGCO), which acquired a 30% stake in PT Chandra Daya Investasi (CDI), Chandra Asri’s infrastructure subsidiary. The investment will finance:

• Power generation assets for CAP2
• Water treatment and industrial utilities
• Port terminal development

These initiatives are crucial for supporting the sustainable development of Chandra Asri’s mega-projects in Indonesia.

Economic and Environmental Impacts

Job Creation and Skills Development:

• Over 1,000 direct and indirect jobs are expected to be created through this regional expansion.
• Opportunities for upskilling and technology transfer to Indonesia’s workforce.

Sustainability Commitments:

• Chandra Asri aims to modernize the acquired facilities to meet its 2050 Net-Zero commitment.
• The Singapore refinery is being reviewed for greener fuel production, including bio-naphtha and low-carbon hydrogen.

Market Growth Potential:

• Southeast Asia’s petrochemical demand is expected to grow at 4.5% CAGR over the next 10 years, especially in packaging, automotive, and construction sectors.

Frequently Asked Questions (FAQs)

Conclusion

With the acquisition of Shell’s Singapore assets and partnerships with global players like Glencore, EGCO, and Sembcorp, Chandra Asri is well-positioned to lead Southeast Asia’s chemical and energy transition. This strategic leap aligns with Indonesia’s industrial goals and sets a precedent for regional integration, innovation, and sustainable growth.