Shell's naphtha cracker start-up in China on track?

15-Dec-05

Despite industry expectations of a delay, Royal Dutch Shell is to commence running its new joint-venture naphtha cracker in China on time. However, how much capacity of the 800,000 tpa cracker -- a joint-venture with China National Offshore Oil Corp. (CNOOC) -- would be operational is still unclear. The US$4.3 billion petrochemical complex includes a condensate splitter, which produces naphtha from a super light crude oil. The cracker will need to import much naphtha at least for the first quarter until its condensate splitter produces light naphtha. The cracker will consume a maximum of 600,000 tons of naphtha for the first three months. Shell last month bought 75,000 tonnes of Middle Eastern naphtha for a test run Shell, meanwhile, has secured two to three 75,000 ton cargoes of full-range naphtha, probably of Middle East high-paraffinic quality, to feed the new cracker in Huizhou, southern Guangdong province. The Asian naphtha market has been boosted by the prospect of higher Chinese imports, forcing north Asian petrochemical firms to pay more for 2006 supplies.