Shell China cracker set to beat nameplate capacity

29 October 2007 10:22  [Source: ICIS news]

SINGAPORE (ICIS news)--Anglo-Dutch oil major Shell expects production at its cracker joint venture in China to reach or surpass its nameplate capacity in 2007-08 and it is still keen to build a refinery in the country, a company spokesman said on Monday.

 

Operating rates at the 800,000 tonne/year cracker in Guangdong province hit 94% for the first nine months of this year, up from 85% last year, the spokesman, who declined to be named, added.

 

Shell expects the cracker complex (including downstream plants), built together with China National Offshore Oil Co (CNOOC), to meet or surpass its nameplate capacity of 2.3m tonnes/year this year and next.

 

The major was keen to build a refinery to establish its downstream presence as China will be one of its key markets for the future, the spokesman said.

 

However, its talks with CNOOC to join the Daya Bay refinery project ended unsuccessfully last year and Shell was now planning to partner Kuwait Petroleum Corp (KPC) and Sinopec in another project in Nansha, Guangdong.

 

However, Kuwaiti news agency KUNA reported that Beijing had asked KPC to drop Shell as a prospective partner.

 

The Anglo-Dutch major was still in talks with the Kuwait-based firm to explore other options, the spokesman said.

 

 

By: Florence Tan
+65 6780 4359

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