Aster to take CAFHI stake, enter direct aviation fuel supply at Singapore's Changi

Aster has agreed to acquire an undisclosed stake in Changi Airport Fuel Hydrant Installation, or CAFHI, giving the Singapore refiner and chemicals producer a route into direct aviation fuel supply at Changi Airport as it expands into both conventional jet fuel and sustainable aviation fuel, the company said Aug. 28.

The transaction would make Aster a shareholder in CAFHI alongside other major energy companies and enable it to provide aviation fuel directly to international airlines at Changi, according to the company.

The deal remains subject to regulatory approvals and customary closing conditions, and further details will be shared when appropriate, Aster said in response to Platts' query about the size of the strategic interest and the expected completion timeline.

"We are unable to comment on potential supply volumes as it is commercially sensitive and subject to customer demand and operational requirements. Our focus is on strengthening our role in aviation fuel infrastructure and supporting the industry's long-term needs," a spokesperson for Aster said, responding to Platts' query on the expected aviation fuel sales volumes associated with the investment.

Andre Khor, deputy CEO of Aster, said the acquisition of CAFHI stake represents an important step in Aster's expansion into aviation fuel.

"Combined with our refining and storage operations and growing capabilities in sustainable aviation fuel, it strengthens our position to support the evolving energy needs of aviation in Singapore and the region, in serving one of the world's leading aviation hubs," he said.

Aster operates a refinery with a capacity of more than 300,000 barrels/day at Pulau Bukom, alongside a 1.1 million metric tons/year naphtha cracker. Its infrastructure portfolio includes port and storage assets.

CAFHI operates the aviation fuel storage and distribution infrastructure serving Changi Airport, making it a key link between fuel suppliers and airlines operating at the hub.

To participate in Singapore Sustainable Aviation Fuel Co. Ltd.'s tender for central SAF procurement, sellers must either be a member of CAFHI or a partner of a CAFHI member to demonstrate the ability to deliver the fuel, according to a Singapore-based SAF market participant.

"The investment complements Aster's growing sustainable aviation fuel capabilities," the company said.

Aster said it is working with Aether Fuels on the development of a next-generation SAF facility at Pulau Bukom and separately with Keppel's Infrastructure Division to assess a commercial-scale ethanol-to-jet SAF facility on Jurong Island.

The projects form part of a strategy to build an integrated platform spanning energy production, storage and distribution, with the CAFHI investment extending that chain into airport fuel infrastructure, Aster said.

Platts, part of S&P Global Energy, assessed SAF (HEFA-SPK) FOB Straits at $2,476/mt on Aug. 27, unchanged day over day.