Beijing, China, -- Shell Nanhai B.V. (Shell) and China National Offshore Oil Corporation’s (CNOOC) 50:50 joint venture has officially assumed ownership of CNOOC’s ongoing project to build an ethylene cracker and several derivatives units, after receiving all the necessary government approvals. Following a final investment decision in March 2016, the project will now be owned and operated by the existing joint venture, CNOOC and Shell Petrochemicals Company Limited (CSPC).
The facilities being built next to CSPC’s existing petrochemical complex in Huizhou, Guangdong Province will increase ethylene production capacity by 1.2 million tonnes per year. Around 70% of the construction work is now complete and the new facilities are expected to start up around the fourth quarter next year. The expansion project will also include the largest styrene monomer and propylene oxide (SMPO) plant in China.
“Today marks another positive step for Shell’s Chemicals business,” said Graham van’t Hoff, Executive Vice President for Royal Dutch Shell plc’s global 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.”
Dong Xiaoli, General Manager Assistant of CNOOC and General Manager of CNOOC Oil & Petrochemicals Co., Ltd 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.”
Shell will apply its proprietary OMEGA, styrene monomer and propylene oxide (SMPO) and polyols technologies to produce 150,000 tonnes per annum (tpa) of ethylene oxide, 480,000 tpa of ethylene glycol, 630,000 tpa of styrene monomer, 300,000 tpa of propylene oxide, and 600,000 tpa of high quality polyols. This more than doubles the volumes and range of CSPC’s high quality products to around 6 million tonnes per year. It will be the first time that Shell’s industry-leading OMEGA and advanced polyols technologies are applied in China.
The CSPC site, which has a strong track record of reliable and safe operations, currently converts a variety of liquid feedstocks into olefins and derivative products. These are used in a wide range of consumer goods, including computers, plastic bottles, cars, furniture, washing liquids and personal care products.