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Shell and CNOOC to expand petrochemical complex in China

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Hydrocarbon Engineering,

China National Offshore Oil Corp. (CNOOC) and Shell Nanhai B.V. (Shell) have announced the final investment decision to expand CNOOC and Shell Petrochemical Company’s (CSPC) existing 50:50 joint venture (JV) in Huizhou, Guangdong Province, China. Subject to regulatory approvals, CNOOC and Shell have agreed that CSPC should take over CNOOC’s ongoing project to build additional chemical facilities next to CSPC’s petrochemical complex.

The project comprises the construction of a new ethylene cracker and ethylene derivatives units, which will increase ethylene capacity by more than 1 million tpy. It will also include a styrene monomer and propylene oxide (SMPO) plant.

Graham van’t Hoff, Executive Vice President for Royal Dutch Shell plc’s global Chemicals business, said: “I’m pleased to confirm that we are going ahead with this growth project. We are selective in our investments, and this decision underlines our confidence in the strong growth potential for chemicals in China. It will position Shell and our partner CNOOC well to help meet the growing needs of customers in this expanding petrochemicals market.”

“The expansion of the Nanhai petrochemical complex supports the Chinese long-term petrochemicals development plan and mixed ownership reform direction. We’re delighted that Shell will contribute to the project and our joint venture with industry-leading technology, with improved value through integration with nearby CNOOC refineries to produce high quality petrochemicals for China’s growing domestic markets,” added Dong Xiaoli, General Manager Assistant of CNOOC and General Manager of CNOOC Oil & Petrochemicals Co., Ltd.

Shell will apply its proprietary OMEGA, SMPO and Polyols technologies to produce 150 000 tpy of ethylene oxide, 480 000 tpy of ethylene glycol and 600 000 tpy of high quality polyols.

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