Shell-CNOOC JV to Expand Petrochemical Complex in China

20 Jan 2025 CW Team

The joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd (CSPC) has confirmed its final investment decision to expand its petrochemical complex in Daya Bay, Huizhou, southern China. The expansion will include the construction of a third ethylene cracker, with an annual capacity of 1.6 million tonnes, alongside new downstream derivative units.

The project also plans to build a new facility for producing 320,000 tonnes of high-performance specialty chemicals annually, such as polycarbonates and carbonate solvents, which are essential for industries like electric vehicles, energy storage, and consumer goods.

CSPC’s expansion aligns with Shell’s strategy to focus on premium, differentiated chemical products.

The project is expected to be completed by 2028 and will enhance CSPC’s ability to meet China’s growing demand for chemicals used in agriculture, construction, healthcare, and industrial applications.

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