Aster Chemicals and Energy, a joint venture between Indonesia’s Chandra Asri and Swiss commodities trader Glencore, has lifted the force majeure it had declared on its ethylene cracker complex on Singapore’s Pulau Bukom (Bukom Island) and has begun gradually resuming normal supply, it was reported on September 23, 2026.
The Bukom ethylene cracker complex has an ethylene production capacity of 1.1 million metric tons per year (MMtpy), and also produces other olefin products such as propylene in addition to ethylene, according to the report. The facility was originally a petrochemical asset operated by Shell in Singapore, and is now operated by Aster Chemicals and Energy, the joint venture between Chandra Asri, Indonesia’s largest integrated petrochemical producer, and Glencore, which acquired it. The acquisition was regarded as a landmark transaction marking Shell’s exit from its Singapore petrochemical business. The company declared force majeure in 2025 amid overlapping naphtha transportation disruptions and an extended maintenance schedule, with the transportation disruptions reportedly linked to geopolitical tensions along the routes used to ship Middle Eastern naphtha to Asia via the Red Sea and the Strait of Hormuz.
The ethylene production capacity of the facility for which force majeure has now been lifted is 1.1 MMtpy, and feedstock supply such as naphtha is reported to be gradually normalizing following the lifting of force majeure. The specific timeline for a full return to normal operations has not yet been disclosed.
The lifting of force majeure is understood as a sign that the disruption to Asia’s petrochemical supply chain, which had been triggered by geopolitical risk originating in the Middle East, is gradually easing.
Observers note that this case shows how geopolitical tensions in the Middle East can directly affect feedstock procurement and production in Asia’s petrochemical sector. In particular, it is pointed out that large cracker facilities such as the one on Singapore’s Pulau Bukom, which rely mainly on naphtha as feedstock, can see their utilization rates drop immediately when problems arise in feedstock supply routes, again highlighting the need for feedstock diversification. It is also cited as a case in which an emerging operator such as the Chandra Asri-Glencore joint venture, which acquired a petrochemical asset from a global major such as Shell, had its supply chain management capabilities tested in responding to this crisis. If the lifting of force majeure normalizes ethylene and olefin supply within Asia, it is expected to also help stabilize prices for related downstream products. As other petrochemical facilities clustered around Singapore’s Jurong Island and Bukom Island often share similar feedstock sourcing routes, this case could also prompt other regional operators to review their own feedstock procurement strategies. Given that Glencore, a commodities trader, holds a stake in the joint venture, there is also interest in what role Glencore’s global commodities network will play in any future feedstock diversification.
When naphtha supply will fully normalize and the facility will return to 100% utilization is of interest. Whether Aster Chemicals and Energy will take steps to diversify its feedstock sourcing in the wake of this incident is also a matter of interest. Whether similar supply disruptions could recur if geopolitical tensions originating in the Middle East flare up again is also worth watching. How Singapore will strengthen the stability of its feedstock procurement to maintain its position as a Southeast Asian petrochemical hub is also of interest.