Beyond Shell’s refinery sale, Singapore’s oil industry faces more existential questions

ON MAY 8, global oil giant Shell announced that it was selling its Singapore assets on Pulau Bukom and Jurong Island. Following the announcement, market watchers were quick to say that the deal does not compromise Singapore’s status as an oil hub.

After all, the Singapore facilities were not shuttered and will still be operated by the buyer: a joint venture between commodity trader Glencore and a unit of Indonesian petrochemical giant Chandra Asri.

Yet, the exit of such a major player from refining activities here has nonetheless raised questions about whether Singapore’s rising carbon tax might result in further departures.