Jakarta, INTI - Singapore-based Aster Chemicals and Energy expects to finalize several projects in the second half of this year aimed at increasing its refining capacity and enabling oil imports via supertankers to reduce costs, according to its Chief Financial Officer.
The company, a joint venture between Indonesia’s Chandra Asri (TPIA.JK) and Glencore (GLEN.L), has announced a series of initiatives to enhance competitiveness since taking over the Bukom refinery and petrochemical assets in Singapore last April.
Condensate Splitter
Aster’s 70,000 barrels per day (bpd) condensate splitter, acquired last year from the Petrochemical Corporation of Singapore, is scheduled to become operational in the second half of 2026, CFO Andre Khor told Reuters.
The upgraded facility will be capable of processing 30% sour condensate sourced from Glencore’s global network, boosting Aster’s total crude and condensate processing capacity to 307,000 bpd, up from 237,000 bpd.
Once the splitter is operational, Aster plans to increase the cracker running rates at Bukom and export the additional ethylene to Chandra Asri’s petrochemical complex in Cilegon, Indonesia, Khor added.
SBM Repairs and Petrol Stations
Aster anticipates completing repairs on its single buoy mooring (SBM) in the second half of the year. This will enable Very Large Crude Carriers (VLCCs) to berth and unload up to 2 million barrels of oil each. Currently, the Bukom refinery receives crude shipments from the Middle East, Malaysia, and Brazil using smaller tankers.
“By investing in a single buoy mooring, we are then able to bring larger ships that we know for sure are going to be cheaper and more competitive,” Khor said.
Last month, Chandra Asri finalized the acquisition of ExxonMobil’s Esso retail stations in Singapore and plans to renovate them, according to CFO Andre Khor.
Storage, Power
The company is also evaluating plans to lease idle crude and refined product storage tanks at the Bukom site, which were originally designed for a 500,000-bpd refinery, Khor added.
“We have 4.3 million cubic metres of storage that we can look to monetise and also provide strategic storage to add into the Singapore tankage ecosystem,” he said.
Aster, through its power subsidiary, plans to increase its low-carbon electricity generation to sell excess supply to the Singapore grid, Khor said. The company is installing solar panels at its Bukom and Jurong Island sites and intends to take a final investment decision on a $150 million gas-fired power plant capable of burning hydrogen by 2029.
"It continues to be a challenging time for the refining and chemicals industry, hence we need to invest and be able to generate all these credits that can improve our bottom line quickly to make the units more resilient," he said.
Singapore plans to raise the carbon tax for high-emission businesses to S$45 ($35.42) per ton, up from S$25 in 2024–2025.
While geopolitical developments have supported global refining utilisation rates at 80–90%, Khor noted that chemical plants worldwide are currently operating at 70–80%, below the healthy benchmark of 85–90%.
He added that it will take time for the effects of petrochemical consolidation in South Korea and China to flow through the system, and the sector is expected to recover by 2027–2028.
Conclusion
With a series of strategic projects spanning refinery capacity expansion, SBM upgrades, EV-ready power generation, and low-carbon energy initiatives, Aster is positioning itself as a resilient and competitive player in Singapore’s refining and chemicals sector. By combining infrastructure modernization, renewable energy adoption, and long-term investment in hydrogen-ready power, the company aims to strengthen profitability, sustainability, and its role as a key link in regional energy and petrochemical supply chains.
Read more: National Ceramic Industry Ready to Move Up, Minister Targets Top Four Global Producers