Shell to Sell its Singapore Refining and Petrochemicals Plant, Employs Goldman Sachs to Navigate the Deal

Shell is considering selling its Singapore refining and petrochemical plants as part of a broader strategic review, according to several sources close to the matter, and has hired investment bank Goldman Sachs to investigate a potential deal.

Wael Sawan, the global energy company's new CEO, plans to cut spending over the next two years to boost profitability while remaining committed to achieving net zero emissions by 2050.

These efforts include a review of energy and chemical assets on Singapore's Bukom and Jurong islands, which was announced in June, as the group seeks to repurpose its energy and chemical parks globally in order to provide customers with more low-carbon solutions.

"Our strategic review is ongoing and we are exploring several options including divestment," a Shell spokesperson told on Wednesday Aug 23. Singapore's position as a regional trading and marketing hub remains important, she added.

According to the sources, companies reviewing Shell's Singapore assets include Asia's largest refiner, China's Sinopec, as well as global trading firms Vitol and Trafigura.

The Bukom refinery, Shell's only wholly owned refining and petrochemicals facility in Asia, has a capacity of 237,000 barrels per day (bpd). It was Singapore's first refinery, built in 1961.

A 1 million metric tonnes per year (tpy) ethylene cracker and a 155,000 tpy butadiene extraction unit are also housed in the complex. These are integrated with a monoethylene glycol (MEG) plant at Shell's Jurong Island petrochemicals site.

Shell decided in March not to pursue two projects in Singapore to produce biofuels and base oils.