Aster Chemicals and Energy will fork out U.S. $155 million to upgrade its refinery on Pulau Bukom in Singapore, the company said Dec. 9.
The company wants to strengthen its supply chain and capture more value from its refining and lubricants operations. The Bukom facility – acquired from Shell earlier this year – already forms part of Aster’s integrated refining and petrochemicals platform, serving industrial, marine and automotive lubricant markets.
The investment consists of $75 million to refurbish a condensate-splitter unit and $71 million to modernize the site’s lube oil complex.
The upgrades are expected to be completed in 2026 and aim to boost crude-processing capacity above 300,000 barrels per day and enable the conversion of refinery residue into higher-value base oils used in lubricants.
Under the upgrade plan, rehabilitating the condensate splitter unit will increase throughput capacity beyond the refinery’s previous 237,000 barrels per day, while the lube upgrade will allow the facility to safely and reliably upgrade residues into base oils. Aster also plans enhancements in logistics to allow exports of chemicals such as butenes and butanes and imports of pyrolysis gasoline from its associated plant in Cilegon, Indonesia — enabling deeper feedstock integration across its sites.
“Our refinery is currently running at planned rates,” Aster said in relation to recent supply constraints, but the investment seeks to deliver long-term stability and better margins through upgrading products.
As a next step, Aster has also signed a memorandum of understanding with Lubrizol to explore development of specialty lubricants and chemical solutions, leveraging Bukom’s upgraded base oil output and the broader petrochemical value chain.