22 March 2016
DETAILS
China National Offshore Oil Corporation (CNOOC)
today announce the final investment decision to expand
CNOOC and Shell Petrochemical Company’s (CSPC)
existing 50:50 joint venture (JV)
in Huizhou, Guangdong Province, China.
This decision follows the announcement of
a Heads of Agreement in December 2015
between the two partners.
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 includes the ongoing construction of
a new ethylene cracker and ethylene derivatives units,
which will increase ethylene capacity
by more than 1 million tonnes 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.
Shell will apply
its proprietary OMEGA, SMPO and Polyols technologies
to produce
* 150,000 tonnes 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 tonnes 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.
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 and washing liquids.
Graham van’t Hoff,
Executive Vice President
for Royal Dutch Shell plc’s global Chemicals business,
“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.”
Dong Xiaoli,
General Manager Assistant of CNOOC
and General Manager of CNOOC Oil & Petrochemicals Co., Ltd.
“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,”
WWW.CHEMWINFO.COM BY KHUN PHICHAI
