PULAU BUKOM MANUFACTURING SITE(https://www.aster.com.sg/images/ACEMap1.webp)What was once an oil storage installation over 125 years ago has now become one of the most important production sites in Shell. Today, Pulau Bukom is an integrated oil and petrochemicals site with manufacturing facilities for fuels, lubricant base oils and specialty chemicals.
Shell has been in Singapore for over 1251 years, and it is one of the largest foreign investors in the country. Its long history in Singapore began in Pulau Bukom. Today, the Bukom manufacturing site has developed into one of the most important Shell production sites in the world.
Bukom is the largest wholly-owned Shell refinery globally in terms of crude distillation capacity (500,000 barrels per day). It is also home to a world-class Ethylene Cracker Complex (up to a million tonnes per annum) and a Butadiene Extraction Unit (155,000 tonnes per annum). The site also produces base oils, which is sent to Shell's Tuas Lubricants Plant. Bitumen produced on Bukom, along with lubricants produced from base oils, are supplied to China and across South East Asia.
With the completion of the Shell Eastern Petrochemicals Complex (SEPC) project in May 2010, Bukom is now an integrated oil and petrochemicals site, with manufacturing facilities for fuels, lubricant base oils and specialty chemicals.
Integrating the refining and petrochemicals assets maximise the economic and efficiency benefits in terms of feedstocks, operations and logistics. Feedstock flexibility helps the site maximise returns as economics shift between hydrocarbon streams, and more importantly, provides greater security of supply for Shell's customers.
Seeing the need in these times, Shell has since May 2020, diverted resources to produce Isopropyl Alcohol (IPA) at Bukom. IPA is a key ingredient for sanitisers and disinfecting products. Pulau Bukom Manufacturing plant is the only producer of IPA in Singapore and South East Asia, supplying to customers in Asia. Read how IPA can help halt COVID-19 here.
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Bukom is situated on a 243-hectare island 5.5 km southwest of Singapore. It forms part of a group of southern islands that have been identified for petrochemical and other industrial manufacturing.
1 Shell's Pulau Bukom Manufacturing Site is 59 years old as of August 2020
Bukom's Role In The RegionSingapore is Shell's largest petrochemical production and export centre in the Asia Pacific region. The Pulau Bukom Manufacturing Site is part of Shell Eastern Petroleum (Pte) Ltd (SEPL) and supplies products to the various Shell businesses in Singapore, including:
- Retail
- Commercial
- Chemicals
- The Global Oil Products businesses of Marine (bunker fuels), Aviation (jet fuel), lubricants and LPG.
Approximately 90 per cent of Bukom's products are exported to countries in the Asia Pacific region and beyond.
Shell delays shutdown of base oil plant at Pulau Bukom due to supply concerns
14 July 2022
Shell Singapore, which announced in December 2020 that it will close its Group I base oil plant in Pulau Bukom, said it will extend its operation, "driven by Shell's intent to safeguard the supply security for its customers in a market environment with increased supply disruption risks."
The Shell spokesperson added that "The Group II base oil plant is pending final investment decision and we will share more details in due course."
Group II base oils are more refined than Group I. Group II base oils are produced using a hydrotreating process to replace the traditional solvent-refining process used in producing Group I base oils. The main difference between Group I and Group II base stocks is sulfur content and saturates. Two main characteristics of Group I base oils are that they are composed of less than 90% saturates and/or greater than 0.03% sulfur. Unlike Group I base oils, Group II base oils must contain over 90% saturates and less than 0.03% sulfur. The greater percentage of saturates gives these lubricants better antioxidation properties than Group I base oils. Many finished lubricant formulations have switched from Group I to Group II and III due to the latter's superior properties and cost competitiveness.
The Shell spokesperson explained further that the Pulau Bukom Manufacturing Site in Singapore is "a strategic hub for Shell's lubricant operations."
Its earlier announcement to cease operations of its Group I base oil plant starting July 2022 was driven by "Shell's intent to enhance the competitiveness of its lubricants business, base oils supply demand balance and the general global decline in Group I base oil demand."
The Pulau Bukom Group I base oil refinery has a capacity of 360,000 tons per annum. Shell had planned to reduce Pulau Bukom's fuel refining capacity by half, to 250,000 barrels per day (bpd), as part of its shift to low-carbon fuel alternatives, following its shutdown.
In November 2020, Shell Singapore announced a 10-year plan for how the company could make significant investments in people, assets and capabilities to repurpose its core business and aim to cut its own CO2 emissions here by about a third within a decade.
The announcement builds on Shell's overarching ambition to be a net-zero emissions energy business by 2050 or sooner, in step with society and with customers.
Shell to sell interest in Singapore Energy and Chemicals Park to CAPGC
8 May 2024
Singapore − Shell Singapore Pte Ltd, a subsidiary of Shell plc, has reached an agreement to sell its Energy and Chemicals Park in Singapore to CAPGC Pte. Ltd., a joint venture company between Chandra Asri Capital Pte. Ltd. and Glencore Asian Holdings Pte. Ltd. The transaction will transfer all of Shell's interest in Shell Energy and Chemicals Park Singapore to CAPGC.
"This agreement marks a significant step in Shell's ongoing efforts to high-grade our Chemicals and Products business, and is a testament to our commitment to deliver more value with less emissions, as outlined at our Capital Markets Day last year." said Huibert Vigeveno, Shell's Downstream, Renewable and Energy Solutions Director. "We are proud of our history at Bukom and Jurong Island and our contributions to the economic growth of Singapore in this sector in the past decades. Our commitment to Singapore remains steadfast and its importance as a regional hub for our marketing and trading business remains important. As Singapore continues to decarbonise, Shell looks forward to a continued partnership with the country, and with our customers in the region."
Shell ran a competitive bid process to reach this milestone. Staff in Shell Energy and Chemicals Park Singapore will continue their employment with CAPGC under the new ownership, providing continuity for staff and contributing to ongoing operational reliability and safety.
Subject to regulatory approval, the transaction is expected to complete by the end of 2024.
CAPGC Completes Acquisition of Shell's Interest in Singapore Energy and Chemicals Park
Singapore, 1 April 2025 — CAPGC Pte. Ltd., a joint venture between Chandra Asri Capital Pte. Ltd. (a subsidiary of Chandra Asri Group) and Glencore Asian Holdings Pte. Ltd. (a subsidiary of Glencore), announces the successful completion of the acquisition of Shell Singapore Pte. Ltd.'s (SSPL) interest in the Shell Energy and Chemicals Park (SECP) (now known as Aster Energy and Chemicals Park) in Singapore. The acquisition was executed through the purchase of shares in Aster Chemicals and Energy Pte. Ltd., a wholly owned subsidiary of Shell Singapore Pte. Ltd.
The Energy and Chemicals Park comprises a refinery with a processing capacity of 237,000 barrels per day of crude oil, a 1.1 million metric ton per annum ethylene cracker on Bukom Island, and downstream chemical assets on Jurong Island. This acquisition represents a major step, expanding CAPGC's strategic footprint in the regional energy and chemicals industry. The facilities will continue to operate under Aster Chemicals and Energy Pte. Ltd, and employees at Aster Chemicals and Energy Pte. Ltd will continue to be employed by the company under the new ownership.
President Director and Group CEO of Chandra Asri Group, Erwin Ciputra, stated "This acquisition marks a significant milestone in our journey and is integral to our strategy of becoming a leading player in the regional energy, manufacturing, and infrastructure solutions industry. We look forward to continuing our contributions as a growth partner in the advancement of the energy and manufacturing sectors across Southeast Asia. We are excited to collaborate closely with the talented team at Aster, building upon a legacy of operational excellence while exploring new avenues for growth and value creation."
Managing Director of Glencore Singapore, Quek Chin Thean, said "CAPGC's acquisition aligns with our broader strategy of investing in high-potential assets and expanding its presence in key markets. The company remains committed to driving innovation, sustainability, and operational excellence across its business activities." This acquisition underscores CAPGC's strong commitment to Southeast Asia, reinforcing its dedication to fostering long-term industrial collaboration in the region. CAPGC remains focused on supporting Singapore's strategic role as a global hub for energy and chemicals, with an emphasis on driving sustainability, innovation, and maintaining the highest standards of operational excellence
Chandra Asri's purchase of Shell Singapore refinery brings scale, risk
SINGAPORE - While Chandra Asri's deal to buy Shell's Singapore refinery will see it join the ranks of South-east Asia's largest petrochemicals players, it is taking on the risk of running an ageing facility in a highly competitive sector.
In taking over Shell's Bukom facility, which dates to 1961, Indonesia's Chandra Asri Pacific will acquire an asset that is less efficient than more modern plants, but which gives it a second naphtha cracker, expands its product portfolio and renders plans to build a greenfield complex in its home country unnecessary, analysts and industry insiders said.
Owning a refinery for the first time will also give Chandra a ready source of feedstock, from crude oil facilitated by Swiss trading house Glencore, its minority partner in the deal, which can help sell its products into global markets.
"Glencore as its partner means Chandra Asri can harness this trading giant's strengths in not only the trading sphere but also on the logistical front," said Mr Salmon Lee, head of polyester at Wood Mackenzie.
"It's a very significant step in Chandra Asri's stepping up its game in the increasingly competitive petrochemical industry," he added.
The companies did not disclose the value of the deal, but brokerage Jefferies estimated sale proceeds of US$300 million (S$406 million) to US$500 million.
Shell in 2023 invited more than a dozen companies, including numerous Chinese petrochemicals firms, to look at its Bukom assets in a process managed by Goldman Sachs, sources have said, with Chandra Asri one of the earliest to show interest.
The purchase, to close by year end, will give Chandra Asri nearly two million tonnes per year of ethylene capacity, leapfrogging it into South-east Asia's top three, according to Reuters calculations, behind Thailand's PTT Global Chemical and Siam Cement Group's facilities in Thailand and Vietnam.
Chandra Asri had planned a second Indonesian cracker with a target start-up date of 2026 to 2027, but industry sources said the acquisition of Shell's cracker offered a cheaper option in a high-cost environment.
"We see a possibility that Chandra Asri may no longer proceed with its plan to build a second Indonesia cracker project given the geographical diversification after merger and acquisition," Citi analyst Oscar Yee wrote.
Asked about its previous expansion plan, Chandra Asri told Reuters: "As an integral part of our growth strategy, we actively seek opportunities to build partnerships with diverse entities, both to nurture organic business and pursue strategic M&A."
Competition, risk
With the Bukom purchase, Chandra will steal a competitive march on rival Lotte Chemical Indonesia's planned one million ton per year cracker, expected to come online in mid-to-late 2025.
However, the ageing Singapore plant brings challenges, given an industrywide squeeze on petrochemical margins.
Most steam cracker operator margins in Asia, excluding China, were negative in 2023, with an upturn likely only in 2028, Wood Mackenzie calculations show.
A September report by the consultant said Bukom was the weakest integrated refinery-petrochemical site in Shell's portfolio, with integrated net cash margins below the global weighted industry average of US$14 a barrel.
North-east Asian plants making naphtha-based monoethylene glycol, a major product at Shell's site, averaged losses of US$94 a ton in 2022 and 2023 due to overcapacity and weak China demand, said analyst Ann Sun from market intelligence firm ICIS.
Singapore is also set to increase its carbon emissions tax from $5 a tonne now to $25 in 2024-2025, $45 in 2026-2027 and $50-$80 by 2030, which analysts say could add millions of dollars to refiners' costs.
Aster Chemicals acquired Condensate Splitter Unit from PCS Pte Ltd
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Singapore, 16 June 2025 — Aster is pleased to announce the signing of an agreement between Aster Chemicals and Energy Pte Ltd with PCS Pte. Ltd. (PCS) for the acquisition of PCS's entire 50% beneficial interest in a Condensate Splitter Unit (CSU) and associated assets (the "Condensate Splitter Facility"). PCS is a leading company within the Singapore Essential Chemicals Complex on Jurong Island and it is also the pioneering company of the essential chemicals industry in the region.
Through this agreement, Aster will acquire full 100% ownership of the Condensate Splitter Facility including key infrastructure comprising the floating roof crude tank, two fixed roof crude recirculation tanks, and a fixed roof Kero tank equipped with advanced mixing and sampling features.
Post acquisition, Aster will seek to invest to rejuvenate the CSU. Post-revitalization, Aster's total capacity will increase from 237,000 barrels per day currently, to more than 300,000 barrels per day. This will enable deeper integration with Aster's existing refining and petrochemical assets.
Group CEO of Aster, Erwin Ciputra, said, "This strategic move augments our commitment to create a compelling value chain of our capabilities and infrastructure in Singapore. This upgrade will enhance feedstock optimization, reduce downtime, with greater operational flexibility and increased throughput capacity to meet growing regional demand. Together with our fully integrated refinery and downstream chemical assets on Bukom and Jurong Island, and through the recent acquisition announcement of Chevron Philips Singapore Chemicals, we will have an enhanced asset base to deliver more reliable and competitive solutions to customers across Singapore and Southeast Asia."
Aster Group Launches New Subsidiary for Integrated Multidisciplinary Engineering Services
Singapore, 23 July 2025 – Aster Group today announced the launch of Aster Engineering Services Pte Ltd, signalling a strategic expansion to become an integrated service provider of multidisciplinary engineering and plant maintenance services to the oil and gas, petrochemical and oil and chemical terminal industries in Singapore and the region.
Aster Engineering Services will provide engineering, procurement and construction or construction management services for a plant or terminal. The formation of this new business will support Aster's integrated refinery operations on Bukom Island and downstream chemical assets on Jurong Island. It will also enable Aster to offer comprehensive, end-to-end solutions across interconnected industries.
As part of the launch of this expansion, Aster's parent company, Chandra Asri has acquired an 11.9% equity stake in Hiap Seng Industries Limited, a renowned Singaporean engineering solutions provider with a seven-decade legacy in mechanical engineering, plant fabrication, construction, and maintenance for energy and process industries.
Aster Engineering Services will explore potential opportunities to partner with Hiap Seng on technical expertise, capacity, and augment its reach to deliver even greater value.
Aster Projects & Technology Director, Mashhad Dohadwala, said "With the launch of Aster Engineering Services, we are excited to extend the Aster commitment to the engineering sectors in Singapore and Southeast Asia. Our strategic relationship with Hiap Seng strengthens our foundation and positions us for future growth as we explore partnership opportunities. We will deliver high-impact consultancy and Engineering services that empower our customers and contribute to the continued leadership in engineering excellence in Singapore and in the region."
Hiap Seng Industries CEO Max Tan, said "We are pleased to welcome the Chandra Asri group as a new substantial shareholder in our Company. We positively embrace this development and view this as a potential opportunity to explore strategic collaborations that will enhance long-term value for all stakeholders."
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ASTER INVESTS USD $125 MILLION TO REVITALIZE SINGAPORE'S CRITICAL OFFSHORE INFRASTRUCTURE
Singapore, 30 September 2025 — Aster announces a USD $125 million investment to rejuvenate Aster's Single Buoy Mooring (SBM) and SBM pipeline infrastructure, an offshore facility around 5.1 kilometers in the sea away from Aster's assets on Bukom.
The overall multi-phase investment programme will support high-volume energy imports and plays a foundational role in ensuring the reliability and competitiveness of Singapore's refining and petrochemical sectors. The SBM enables large tankers to safely and efficiently transfer crude oil directly to Aster's onshore refinery and storage facilities via a subsea pipeline.
This strategic move will improve operational efficiency by streamlining logistics through relieving existing jetty capacity demand, that will enable the future growth plans of Aster to rejuvenate its refinery and condensate splitter unit.
Aster will award contracts to global partners including ALLSEAS and DOF who will be responsible for building, installing, and commissioning the SBM and pipeline infrastructure.
ASTER DOUBLES ETHYLENE EXPORT CAPACITY, ENHANCES PRODUCTION EFFICIENCY AND FLEXIBILITY
Singapore, 27 November 2025 – Aster, a leading provider of energy and chemical solutions in Southeast Asia, announced an agreement with Hitachi Asia Ltd (Hitachi) to acquire advanced compressor solutions to double its ethylene export capacity at Aster Bukom island facility. This investment strengthens Aster's ability to meet rising regional and global demand for ethylene, a vital petrochemical building block for products spanning plastics, textiles, and specialty chemicals.
Under the agreement, Hitachi, through its factory in Japan operated by Hitachi Industrial Products, Ltd., will deliver two new compressor units for scheduled delivery in January 2027. The investment will enable installation of a parallel ethylene chiller system, expand outbound ethylene logistics and enhance operational flexibility and efficiency. The project will also deepen synergy between Bukom and the Chandra Asri cracker facility on Cilegon, unlocking further integration and optimisation across the regional C2 derivatives value chain.
ASTER EXPANDS BUKOM REFINERY CAPACITY WITH USD $155 MILLION REJUVENATION DRIVE FOR GROWTH AND SUPPLY RESILIENCY
Singapore, 9 December 2025 – Aster is investing to strengthen energy supply resilience with key rejuvenation projects at its Bukom refining facility. These investments will increase crude processing capacity while enhancing operational reliability, positioning Aster to better meet demand and strengthen Singapore's role as a critical refining and petrochemical hub.
The key project is a USD $75 million investment to revitalize the Condensate Splitter Unit (CSU). This will increase Bukom refinery's crude processing capacity to over 300,000 barrels per day. Additionally, the Lube Oil Complex (LOC) will be rejuvenated with a USD $71 million project which allows for safe and reliable upgrading of refinery residue to produce higher value base oils which is a main component of lubricants used in industrial, marine and passenger car sectors.
To increase shared feedstocks and processing capabilities, Aster will also invest to improve Bukom's logistics to enable export of mixed C4 product and import of pyrolysis gasoline from Chandra Asri's Cilegon facility. These projects will enable deeper integration between Bukom
and Cilegon to take advantage of the processing capabilities of both sites to further upgrade value from these products.