CPChem inks deal to shed Singapore petrochemical complex

Chevron Phillips Chemical Co. LLC (CPChem)—a 50-50 joint venture of Chevron USA Inc. and Phillips 66 Co.—alongside partners EDB Investments Pte. Ltd. and Sumitomo Chemical Co. Ltd. have entered a deal to sell jointly owned Chevron Phillips Singapore Chemicals Pte. Ltd. (CPSC), which operates a 400,000-tonne/year (tpy) high-density polyethylene (HDPE) complex on Singapore’s Jurong Island.

Under the May 6 sales and purchase agreement, Aster Chemicals and Energy Pte. Ltd. (ACEPL)—a joint venture of Indonesia-based PT Chandra Asri Pacific Tbk (Chandra Asri) subsidiary Chandra Asri Capital Pte. Ltd. (80%) and Glencore PLC’s Glencore Asian Holdings Pte. Ltd. (20%)—would take 100% ownership of CPSC and its production assets, the parties said in separate releases between May 6-7.

Following completion of the proposed transaction, which remains subject to customary closing conditions, CPChem said it expects CPSC’s existing workforce of about 150 employees will have the opportunity to join ACEPL.

If approved, ACEPL’s acquisition of CPSC’s HDPE manufacturing site would further expand the operator’s Aster energy and chemicals park (AECP)—consisting of a 237,000-b/d integrated refinery and 1.1-million typ ethylene cracker on Bukom Island, as well as downstream chemical assets on Jurong Island—that ACEPL formed after completing purchase of Shell PLC’s Singapore energy and chemicals park early last month (OGJ Online, Apr. 1, 2025).

CPChem said the planned CPSC divestment—which was unanimously agreed to by all three of its shareholders—comes as part of the operator’s strategy of optimizing its asset portfolio to ensure long-term competitiveness as the supplier of choice to its global customers.

Despite the asset sale, CPChem said it will remain in Singapore, which serves as regional headquarters responsible for sales and marketing of the company’s products throughout the Asia Pacific.

For AECP, the proposed addition of CPSC to its portfolio comes as an opportunity to grow its footprint as a leading regional supplier.

“This acquisition represents a key achievement for [AECP], supporting our strategic goals with new capabilities and strengthening our offerings to customers,” said Erwin Ciputra, AECP’s chief executive officer, adding that CPSC's manufacturing operations would also advance prospects for innovation and new collaborations.

The companies did not reveal a definitive timeline for when they anticipate the deal to close.