Shell, CNOOC finalise investment plan to expand China JV
Nurluqman Suratman
22-Mar-2016
SINGAPORE (ICIS)–Anglo-Dutch energy giant Shell and China
National Offshore Oil Corp (CNOOC) on Tuesday said that they
have finalised an investment plan to expand their existing
petrochemical joint venture at Huizhou in China’s Guangdong
province which involves a new ethylene cracker.
Shell Nanhai BV and CNOOC signed a heads of agreement (HOA)
in December 2015 for the project, which will see the CNOOC
and Shell Petrochemical Company (CSPC) taking over CNOOC’s
ongoing project to build additional chemical facilities next
to CSPC’s petrochemical complex, they said in a joint
statement.
The existing petrochemicals complex Huizhou (Source:
Shell, CNOOC)
The company did not disclose financial details of the project
or a timeline as to when it expects the new facilities to
come on stream.
The project includes the ongoing construction of a new
ethylene cracker and ethylene derivatives units, which will
increase ethylene capacity by more than 1m tonnes/year, about
double the current capacity, the two firms said.
The current Nanhai complex has a current capacity to convert
950,000 tonnes of ethylene per year into 2.7m tonnes/year
derivative products to supply to the Chinese domestic
market.
The new project will also include a styrene monomer and
propylene oxide (SMPO) plant, which will be the largest such
plant ever built in China, they said.
Shell will apply its proprietary OMEGA, SMPO and Polyols
technologies to produce 150,000 tonne/year of ethylene oxide,
480,000 tonnes/year of ethylene glycol and 600,000
tonnes/year of high quality polyols, according to the
statement.
This increases the volumes and diversity of CSPC’s high
quality product range to around 2m tonnes/year, it
added.
The site in Huizhou converts a variety of liquid feedstocks
into ethylene and derivative products, which are used in a
wide range of consumer goods, including computers, plastic
bottles, and washing liquids, the companies said.
CSPC is a 50:50 joint venture between China National Offshore
Oil Corp (CNOOC) and Shell.
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