A memorandum of understanding between Aster Chemicals and Energy and Puraglobe sets out plans to study a rerefined base oil (RRBO) facility in Singapore, according to statements from both firms. The agreement, signed at the end of April, covers only feasibility work and focuses on converting used motor oil into API Group II and Group III base oils.
The companies said that the proposed plant would apply Puraglobe’s existing rerefining processes, already used at its site in Elsteraue, Germany, where it has waste lubricant throughput capacity of more than 200,000 metric tonnes.
Rerefining used oil can reduce demand for crude-derived base stocks and lower lifecycle emissions, though outcomes vary by technology and scale.
Puraglobe says its process can produce Group III products comparable with virgin materials.
The partners plan to assess siting the facility on Bukom Island, where Aster operates refining and petrochemical assets. The study will examine feedstock availability across Southeast Asia, integration with existing infrastructure and project economics, Aster deputy CEO Andre Khor said in a company release.
Singapore has an established role as a regional refining and trading hub, which analysts often cite as an advantage for supply chain access and export logistics.
Puraglobe CEO Alois Virag stated that the company’s operating track record in Germany and its supply relationships with lubricant manufacturers inform the planned expansion. Public filings show that Puraglobe is backed by Ara Partners and Junction Capital Partners.
Aster, a joint venture involving Chandra Asri and Glencore, operates refining capacity exceeding 300,000 barrels per day along with petrochemical units in Singapore and Indonesia. The companies have not disclosed a timeline for a final investment decision, and the project remains subject to technical and commercial evaluation.