Shell, CNOOC expand petrochemical complex in China

Shell, CNOOC to expand petrochemical complex in China

9:18 AM, 23rd March 2016
Shell, CNOOC to expand petrochemical complex in China

HAGUE, NETHERLANDS: Shell Nanhai BV (Shell) and China National Offshore Oil Corporation (CNOOC) said that they have agreed for CSPC to take over CNOOC’s ongoing project to expand and build additional chemical facilities next to CSPC’s petrochemical complex.

The companies made the final investment decision to expand CNOOC and Shell Petrochemical Company’s (CSPC) existing 50:50 joint venture (JV) in Huizhou, Guangdong province, China, following the announcement of heads of agreement in December 2015.

The project includes the ongoing construction of a new ethylene cracker and ethylene derivatives units, which will increase ethylene capacity by more than 1 million tonne of per year, about double the current capacity. It will also include a styrene monomer and propylene oxide (SMPO) plant, which will be the largest such plant ever built in China.

“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,” said Graham van’t Hoff, executive VP, global chemicals business, Shell PLC.

“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,” said 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 tonne per annum (tpa) of ethylene oxide, 480,000 tpa of ethylene glycol and 600,000 tpa of high-quality polyols. This increases the volumes and diversity of CSPC’s high-quality product range to around 2 million tonne per year, as well as enhances overall energy efficiency. It will be the first time that Shell’s industry-leading OMEGA and advanced polyols technologies will be applied in China.

© Worldofchemicals News


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Shell and CNOOC to expand petrochemical complex in China

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