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Production begins at Shell and CNOOC’s petrochemical unit in China

Shell and the China National Offshore Oil Corporation joint venture

The China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. announced the launch of production of the second ethylene cracker at the Nanhai petrochemicals complex in Huizhou, Guangdong Province, China.

The cracker increases the capacity of ethylene at the complex to 1.2mn tonnes per annum – more than doubling the previous capacity.

The site will soon feature China’s largest styrene monomer and propylene oxide (SMPO) plant.

The joint venture also confirmed that production has begun on several derivative units, with the remaining units to launch in the coming weeks.

The units have all been built by CNOOC, and are jointly owned and operated by the CNOOC and Shell joint venture.

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“The start-up of the new ethylene cracker and derivatives units is a significant milestone for Shell,” commented Graham van’t Hoff, Executive Vice President for Shell’s chemicals subsidiary.

“I would like to thank our partner CNOOC for its excellent project delivery. As the largest single-site ethylene complex in China, CSPC is key to Shell Chemicals’ growth ambitions.”

“The expansion project demonstrates great synergies between CNOOC’s engineering, construction and management capabilities, and Shell’s advanced technologies in chemicals,” stated CNOOC Oil and Petrochemicals’ Chairman and President, He Zhongwen.

“It has been recognised by the government as a role model for major industrial projects in China. This shows what we can achieve through effective international partnerships.”

“We can now produce more and better chemical products for the growing domestic market.”

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