Shell's joint venture company in China, CSPC will increase ethylene capacity by more than 1 million tons per year, about double the current capacity.
The project includes the ongoing construction of a new ethylene cracker and ethylene derivatives units and will also include a styrene monomer and propylene oxide (SMPO) plant, the largest ever plant in China.Shell's joint venture company in China, CSPC will increase ethylene capacity by more than 1 million tons per year, about double the current capacity.#
“CSPC is a 50:50 joint venture between China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V.,” a Shell press release revealed.
This decision follows the announcement of a Heads of Agreement in December 2015 between the two partners.
Subject to regulatory approvals, CNOOC and Shell have agreed that CSPC should take over CNOOC's ongoing project to build additional chemical facilities next to CSPC's petrochemical complex.
Graham van't Hoff, executive vice president for Royal Dutch Shell plc's global Chemicals business, said, “I'm pleased to confirm that we are going ahead with this growth project.”
“We are selective in our investments, and this decision underlines our confidence in the strong growth potential for chemicals in China,” he added.
“It will position Shell and our partner CNOOC well to help meet the growing needs of customers in this expanding petrochemicals market,” Hoff stated.
“The expansion of the Nanhai petrochemical complex supports the Chinese long-term petrochemicals development plan and mixed ownership reform direction,” said Dong Xiaoli, general manager assistant of CNOOC.
“We're delighted that Shell will contribute to the project with industry-leading technology, with improved value through integration with nearby CNOOC refineries,” Xiaoli informed.
Shell will apply its proprietary OMEGA, SMPO and Polyols technologies to produce 150,000 tons per annum (tpa) of ethylene oxide, 480,000 tpa of ethylene glycol and 600,000 tpa of high quality polyols.
According to Shell, this increases the volumes and diversity of CSPC's high quality product range to around 2 million tons per year, as well as enhances overall energy efficiency.
It will be the first time that Shell's industry-leading OMEGA and advanced polyols technologies will be applied in China.
The CSPC site, which has a strong track record of reliable and safe operations, currently converts a variety of liquid feedstocks into olefins and derivative products.
These are used in a wide range of consumer goods, including computers, plastic bottles and washing liquids. (AR)
Fibre2Fashion News Desk – India
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "UBM China (Shanghai)")
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
