CNOOC-Shell to Expand Petrochemical Complex with New Investment

On January 15, Shell China announced that CNOOC-Shell Petrochemicals Company Limited (CNOOC-Shell), a joint venture between Shell South China Private Limited Company and CNOOC Petrochemical Investment Company Limited, has made a final investment decision.

Source: China Energy Network

On January 15, Shell China announced that CNOOC-Shell Petrochemicals Company Limited (CNOOC-Shell), a joint venture between Shell South China Private Limited Company and CNOOC Petrochemical Investment Company Limited, has made a final investment decision. The company plans to expand its integrated petrochemical park in Daya Bay, Huizhou, Guangdong. The expansion will include a new ethylene cracker unit with an annual production capacity of 1.6 million tons, a crucial component for plastic manufacturing. Additionally, several downstream derivative facilities, including those for linear alpha olefins, will be constructed.

The investment will also support the development of a facility dedicated to producing high-performance specialty chemicals, including polycarbonate and carbonate solvents, both essential in everyday life. Polycarbonate is used in the production of impact-resistant plastics, providing an alternative to carbon-intensive steel. Carbonate solvents play a vital role in lithium batteries, which are critical for the electric vehicle and energy storage sectors.

"CNOOC-Shell has been delivering high-quality products to the Chinese market for over two decades and has established itself as one of China's leading Sino-foreign joint venture petrochemical companies," stated Huibert Vigeveno, Shell's Executive Director of Downstream and Renewables. "This new investment marks a pivotal step in CNOOC-Shell's strategic shift towards producing more advanced and differentiated chemical products."

CNOOC-Shell began commercial operations in its first phase in 2006, followed by a second phase in 2018. The complex currently has an annual ethylene production capacity of 2.2 million tons and supplies over 6 million tons of premium chemical products to the domestic market annually. The expansion is expected to be completed by 2028.