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Shell & CNOOC JV to build another ethylene cracker
Dec '15
Shell Nanhai B.V. and China National Offshore Oil Corporation (CNOOC) who operate a 50:50 JV will develop additional chemicals facilities next to the JV's existing petrochemical complex, including an ethylene cracker.

“The agreement includes the ongoing construction of an ethylene cracker and ethylene derivatives units, including a styrene monomer and propylene oxide (SMPO/PDO) plant,” a Shell press release stated.

“The new cracker will increase Nanhai's ethylene production capacity by over 1 million tons per year, about double its current capacity,” it said.

“The expansion of the Nanhai petrochemical complex supports the Chinese long-term petrochemicals strategy,” said Yang Hua, chairman of CNOOC.

“We are delighted that Shell will contribute to the project and our joint venture with industry-leading technology to produce petrochemicals for China's growing domestic markets,” Hua added.

Shell will apply its proprietary Omega and Smpo/Pod technologies to produce ethylene oxide and ethylene glycol, increasing volumes and range of Nanhai's high quality products.

Ben van Beurden, CEO of Royal Dutch Shell said, “This agreement demonstrates our confidence in the Shell-CNOOC partnership and our ongoing commitment to China, after over 100 years of Shell operations in country.”

“It also underlines our confidence in the strong growth potential for chemicals in China and we look forward to further collaborations with CNOOC and growing together with all our business partners,” he too added.

CNOOC has already begun construction of the new petrochemical complex and commercial production from the new facilities is expected in around two years' time.

The expansion would increase the total ethylene production at the Nanhai petrochemical complex to around 2 million tons per year.

The site, with a strong track record of reliable and safe operations, converts a variety of liquid feedstocks into ethylene and derivative products. (AR)

Fibre2Fashion News Desk – India

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