Shell-CNOOC JV to Expand Petrochemical Operations in South China

Shell-CNOOC JV to Expand Petrochemical Operations in South China

CSPC, a joint venture (JV) between CNOOC Petrochemical Investment Ltd. and Shell Nanhai B.V. has reached a final investment decision for expanding its petrochemical complex in Daya Bay, Huizhou, South China with completion set for 2028.

The expansion will include a third ethylene cracker with a planned capacity of 1.6 million tons per year (mtpa) of ethylene, a key building block to make plastics, and associated downstream derivatives units producing chemicals including linear alpha olefins.

The CNOOC and Shell Petrochemicals Company Limited JV will also build a facility to produce 320,000 tpa of speciality chemicals such as polycarbonates, which are used to make impact-resistant plastics, and carbonate solvents, a component of lithium-ion batteries.

Currently, the site produces 2.2 million tons a year of ethylene and 6 million tons of chemical products, as Reuters reported.

Shell noted on Wednesday that new facilities, primarily aimed at meeting domestic demand in China, will produce a range of chemicals that are widely used in the agriculture, industrial, construction, healthcare and consumer goods sectors.

“For more than two decades, CSPC has provided high value products to the market, becoming one of the largest petrochemical joint ventures in China.” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.

“This new investment is a key enabler to realize CSPC’s transformation strategy towards more premium and highly differentiated chemical products. It is consistent with Shell Chemicals & Products strategy to pursue targeted growth at advantaged locations. It also demonstrates our strong partnership with CNOOC,” Vigeveno added.

 

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Doaa Ashraf 705 Posts

Doaa is a staff writer with a Bachelor's Degree in Mass Communication, majoring Journalism from Ahram Canadian University. She has 2-3 years of experience in copywriting, and content creation.

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