Shell-CNOOC JV gains ownership of new petrochemical complex in China
Shell Nanhai and China National Offshore Oil Corporation’s (CNOOC) 50:50 joint venture has secured government approvals to officially assume ownership of new petrochemical complex.
The ongoing project to build an ethylene cracker and several derivatives units will now be owned and operated by the existing joint venture, CNOOC and Shell Petrochemicals Company Limited (CSPC).
CNOOC Oil & Petrochemicals general manager Dong Xiaoli said: “We are delighted to expand our cooperation with Shell by using its industry-leading technology. These government and regulatory approvals complete the official handover from CNOOC to CSPC and are an important step towards producing more petrochemicals for China’s growing domestic markets.”
The new plant will be constructed adjacent to CSPC’s existing petrochemical complex in Huizhou, Guangdong Province. The company anticipates ethylene production capacity to increase by 1.2 million tonnes per annum.
Nearly 70% of construction work has been completed and new facilities are expected to start their commercial operations by the fourth quarter of next year.
The expansion project will also include the largest styrene monomer and propylene oxide (SMPO) plant in China.
Royal Dutch Shell executive vice-president Graham van’t Hoff said: “Today marks another positive step for Shell’s Chemicals business.
“With our strategic partner CNOOC, we are pursuing growth in the expanding Chinese petrochemicals market, and delivering to meet the needs of our customers. The focus is now on best-in-class project delivery.”
Shell will apply its proprietary OMEGA, styrene monomer and propylene oxide (SMPO) and polyols technologies to produce 150,000tpa of ethylene oxide, 480,000tpa of ethylene glycol, 630,000tpa of styrene monomer, 300,000tpa of propylene oxide, and 600,000tpa of high-quality polyols.
Image: Shell-CNOOC JV gets approval for petrochemical complex takeover in China. Photo: courtesy of Shell.