Aster Chemicals and Energy expects to complete several strategic projects in the second half of 2026 to increase its refining capacity and enable supertanker crude imports for cost optimisation, according to the company’s chief financial officer.
The company, a joint venture between Indonesia’s Chandra Asri and Glencore, has announced a series of projects to strengthen its competitive position since acquiring the Bukom refinery and petrochemical assets in Singapore in April 2025.
Condensate Splitter Operations
Aster’s 70,000 barrels per day condensate splitter, acquired from Petrochemical Corp of Singapore, is scheduled to become operational in the second half of the year, mentioned CFO Andre Khor.
The upgraded facility will handle 30 percent sour condensate, sourced through Glencore’s global network, increasing Aster’s crude and condensate processing capacity to 307,000 bpd from the current 237,000 bpd.
Once operational, the splitter will enable Aster to increase Bukom’s cracker utilisation rates and export additional ethylene to Chandra Asri’s petrochemical complex in Cilegon, Indonesia.
Berth Infrastructure Upgrade
Aster expects to complete repairs on its single buoy mooring (SBM) in the second half of the year. This will enable Very Large Crude Carriers to berth and discharge 2 million barrels of oil per vessel. Currently, the Bukom refinery receives crude from the Middle East, Malaysia and Brazil via 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.
Chandra Asri completed the acquisition of Exxon Mobil’s Esso retail stations in Singapore last month and plans to revamp them.
Storage and Power Generation
The company is evaluating plans to lease unused crude and refined products storage tanks at the site, which were designed for a 500,000-bpd refinery capacity.
“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,” Khor said.
Through its power subsidiary, Aster plans to expand its low-carbon electricity generation and sell excess supply to Singapore’s power grid. The company is installing solar panels at its Bukom and Jurong Island sites and plans a final investment decision on a $150 million project to build a gas turbine integration unit capable of burning hydrogen by 2029.
Market Challenges and Recovery Outlook
“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,” Khor said.
Singapore will increase its carbon tax for high-emission businesses to S$45 ($35.42) per tonne, up from S$25 in 2024-2025.
While geopolitical events have supported global refining utilisation rates at 80-90 percent, chemical plants globally are running at 70-80 percent, below the healthy rate of 85-90 percent, according to Khor.
The sector should recover from 2027-2028 as the effects of petrochemical consolidation in South Korea and China work through the system, he added.
For more information visit www.aster.com.sg
