Shell and its joint venture, China National Offshore Oil Corporation CNOOC,have agreed to expand its petrochemical complex in China.
The pair, which are equal partners for the site in Huizhou, Guangdong Province, China, will oversee the construction of an ethylene cracker and ethylene derivatives units, including a styrene monomer and propylene oxide (SMPO/PDO) plant. The new cracker will increase Nanhai’s ethylene production capacity by over 1 million tonnes per year, about double its current capacity.
The new cracker will increase Nanhai’s ethylene production capacity by over 1 million tonnes per year, about double its current capacity.
Ben van Beurden, chief executive Officer of Royal Dutch Shell plc, said: “This agreement demonstrates our confidence in the Shell-CNOOC partnership and our ongoing commitment to China, after over 100 years of Shell operations in country. It also underlines our confidence in the strong growth potential for chemicals in China. We look forward to further collaborations with CNOOC and growing together with all our business partners and customers in China.”
CNOOC has already begun construction of the new petrochemical complex and commercial production from the new facilities is expected in around two years’ time. The expansion would increase the total ethylene production at the Nanhai petrochemical complex to around 2 million tonnes per year.