The Shell Energy and Chemicals Park located at Pulau Bukom is the company's sole energy and chemicals facility in Asia.
Shell has notified both the MPA and the National Environment Agency (NEA) about the shutdown of the oil processing unit, which is responsible for producing refined oil products, including diesel. The cooling process for these products involves using seawater.
According to Singaporean authorities, Shell estimates that several tonnes of refined oil products were released alongside the cooling water discharge.
In response to the situation, the MPA and Shell have deployed vessels to address the light oil sheens observed near Pulau Bukom, utilizing dispersants and absorbent booms for cleanup efforts.
Despite the suspected leak, maritime traffic in the vicinity remains unaffected, and there is no disruption to bunkering operations in the Port of Singapore, the authority confirmed.
Earlier this year, Shell announced its decision to sell its stake in the Singapore Energy and Chemicals Park to CAPGC, a joint venture formed by Chandra Asri Capital and Glencore Asian Holdings Pte. Ltd.
Recently, Glencore has been actively purchasing spot cargoes of Middle Eastern crude for the Singapore refinery, as reported by anonymous traders to Bloomberg last week.
Going forward, Glencore is anticipated to play a more significant role in the physical oil market, as it is now sourcing crude for the Bukom refining and chemicals complex in Singapore.
Glencore, along with other major independent traders like Trafigura and Vitol, has been acquiring refineries and retail network assets that leading international oil and gas companies are divesting as part of their strategic portfolio adjustments.
Commodity traders thus obtain direct access to a refinery, allowing them to send a portion of the crude they sell. This enables them to become more significant participants in the crude options and futures market, effectively hedging their exposure to physical crude oil.