Shell-CNOOC JV receives all government approvals, to assume ownership of new petrochem complex

03-Nov-16

Shell Nanhai B.V. (Shell) and China National Offshore Oil Corporation’s (CNOOC) 50:50 JV 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 Ltd. (CSPC).

The facilities being built next to CSPC’s existing petrochemical complex in Huizhou, Guangdong Province will increase ethylene production capacity by 1.2 mln Mtpa. Around 70% of the construction work is now complete and the new facilities are expected to start up around 4Q next year. The expansion project will also include the largest styrene monomer and propylene oxide (SMPO) plant in China.
Shell will apply its proprietary OMEGA, SMPO and polyols technologies to produce 150,000 Mtpa of ethylene oxide, 480,000 Mtpa of ethylene glycol, 630,000 Mtpa of styrene monomer, 300,000 Mtpa of propylene oxide, and 600,000 Mtpa of high quality polyols. This more than doubles the volumes and range of CSPC’s high quality products to around 6 mln Mtpa. It will be the first time that Shell’s industry-leading OMEGA and advanced polyols technologies are applied in China.