Aster acquires Chevron Phillips’ Singapore polyethylene plant

Chevron Phillips Chemical Company (CPChem) has agreed to divest its interest in Chevron Phillips Singapore Chemicals (CPSC), a polyethylene manufacturing joint venture on Jurong Island, Singapore. The entire stake is being acquired by Aster Chemicals and Energy through its affiliate, Chandra Asri Capital Pte Ltd.

The deal is anticipated to close subject to standard approvals and conditions.

CPSC operates a high-density polyethylene (HDPE) facility with an annual production capacity of 400,000 tonnes. The sale marks a strategic shift by CPChem to streamline its global manufacturing portfolio, while continuing to retain its Asia-Pacific regional headquarters in Singapore, where it oversees sales and marketing activities.

According to CPChem Executive Vice President of Commercial Justine Smith, the transaction will enable the company to optimise its asset portfolio and maintain its competitive positioning as a global supplier of choice. Employees of CPSC, approximately 150 in total, are expected to be retained by the acquiring group.

Aster, a joint venture between Indonesia’s Chandra Asri Group and Swiss commodities firm Glencore, views the acquisition as a major milestone. The group’s Chief Executive Officer Erwin Ciputra said CPSC’s manufacturing operations will enhance Aster’s capabilities, strengthen its customer offering, and support its strategy for future growth. He expressed confidence in the synergies to be created and in the value CPSC will add to Aster’s integrated chemical ecosystem.

Aster’s infrastructure in Singapore has expanded rapidly in 2025. On 1 April, the company completed its acquisition of Shell’s integrated refinery and petrochemical complex on Pulau Bukom and Jurong Island. The purchase included a 237,000 barrels-per-day refinery and a 1.1 million tonnes-per-year ethylene cracker, which have since been rebranded as the Aster Energy and Chemicals Park. These assets, combined with the CPSC facility, significantly boost Aster’s regional manufacturing capacity and reinforce its position as a major energy and chemicals player in Southeast Asia.

Aster is also reportedly preparing a bid for ExxonMobil’s retail fuel station network in Singapore, valued at approximately USD 1 billion, in a bid to further vertically integrate its operations across refining, chemicals, and retail distribution.

CPSC’s HDPE grades are primarily exported to regional markets under preferential tariffs, using ethylene feedstock sourced from Singapore-based PCS. The joint venture shareholders—CPChem (50%), Singapore’s EDB Investments (30%), and Japan’s Sumitomo Chemical (20%)—unanimously approved the transaction. The deal is subject to customary closing conditions and the terms were not publicly disclosed.

The divestment also comes at a time when Chevron has expressed interest in acquiring Phillips 66’s 50% stake in CPChem. The potential shift in ownership structure follows pressure from activist investors on Phillips 66 to exit non-core assets and focus on its refining operations. Rationalising CPChem’s global footprint through the sale of smaller or non-integrated assets such as the Singapore plant aligns with both partners’ evolving strategic priorities.

While Chevron continues to pursue growth in petrochemicals — including major investments in the U.S. Gulf Coast and Qatar — shedding select international operations may streamline CPChem ahead of a possible transition to full Chevron ownership. This transaction reflects a broader realignment of the joint venture’s portfolio toward higher-margin, fully integrated operations.