Shell and CNOOC expand petrochemicals complex in China

SHELL, CNOOC, and the Huizhou Government have announced a cooperation agreement to expand their petrochemical complex in China.

The CNOOC and Shell Petrochemical Company (CSPC) joint venture was established in 2000 and is one of the largest petrochemicals joint ventures in China. It currently converts a variety of liquid feedstocks into olefins and derivatives and a second styrene monomer and propylene oxide (SMPO) plant is under construction.

The expansion will be used to supply products including SMPO, polyols, ethylene glycol, polyethylene and polypropylene. It will also allow Shell to use its technology for linear alpha olefins in Asia for the first time. It also includes the construction of a 1.5m t/y ethylene cracker. In January, Shell and CNOOC signed a memorandum of understanding to explore a commercial-scale polycarbonate production unit at the complex.  

The cooperation agreement was signed in an online ceremony due to Covid-19 travel restrictions. Thomas Casparie, Executive Vice President for Shell’s global chemicals business, said: “Our growth strategy is based on long-term chemicals demand. We are very selective in our investments, and this agreement underlines Shell’s confidence in both the chemicals business fundamentals and our strategic partnerships with CNOOC and the Huizhou Government.”