Sembcorp to purchase 20% stake in clean power unit of Singapore refiner Aster
Agreement also stipulates that Sembcorp will be Aster Power’s sole gas supplier
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[SINGAPORE] Sembcorp Industries has agreed to purchase a 20 per cent stake in Aster Power, a clean power business under Singapore oil refiner Aster Chemicals and Energy.
Sembcorp Utilities, a wholly owned subsidiary of Sembcorp, on Wednesday (Jul 29) inked the agreement with Aster Power and another entity, Aster Asia Alpha. The deal value is undisclosed.
As part of the agreement, Sembcorp will also be Aster Power’s sole gas supplier.
Sembcorp’s investment will support Aster Power’s “next phase of growth”, which includes strengthening its power, steam and renewable energy capabilities, both companies said in a press release.
Parent company Aster is an 80:20 joint venture between Indonesian energy and chemicals player Chandra Asri and commodities giant Glencore.
In the past year, it bought Shell’s Pulau Bukom refinery and various energy and chemicals assets on Jurong Island, while Chandra Asri acquired ExxonMobil’s Singapore petrol kiosk network.
It set up Aster Power in October last year as a dedicated business for clean power solutions, as well as power and steam generation.
The unit had previously secured an agreement with Sembcorp Solar Singapore to deploy 16 megawatt-peak of solar capacity across Aster’s infrastructure on Pulau Bukom and Jurong Island by the end of this year.
Aster Power has also announced plans to invest US$150 million to develop a hydrogen-ready gas turbine with heat integration for its parent company’s chemical facilities.
Sembcorp Singapore chief executive Koh Chiap Khiong sees “potential to better serve the evolving needs of Singapore’s industrial sector” via the partnership with Aster Power.
Aster group CEO Erwin Ciputra said that Sembcorp’s role as an investor “gives us a stronger footing from which to grow”.
The deal is subject to regulatory approvals and finalisation of transaction-related arrangements.
OCBC is acting as Aster Power’s exclusive financial adviser and financing partner in its current and future growth initiatives.
As at 3.53 pm, shares of Sembcorp Industries were trading 2.4 per cent or S$0.13 higher at S$5.55.
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