Company News

CSPC Receives Government Approvals to Take over New Petrochemical Complex

Issue Date:2016-11-02

 

 

On November 2, 2016, Shell Nanhai B.V. (Shell) and China National Offshore Oil Corporation (CNOOC) jointly announced that CNOOC and Shell Petrochemicals Company Limited (CSPC) has officially assumed ownership of CNOOC’s ongoing project to build an ethylene cracker and several derivatives units, after receiving all the necessary government approvals. Following a final investment decision in March 2016, the project will now be owned and operated by CSPC.

             

The facilities will increase ethylene production capacity by over 1.2 million tonnes per year, and more than doubles the range of CSPC’s high quality products to around 6 million tonnes per year. The expansion project will also include the largest styrene monomer and propylene oxide (SMPO) plant in China, which is newly invested. It will be the first time that Shell’s industry-leading OMEGA and advanced polyols technologies are applied in China. Around 70% of the construction work is now complete and the new facilities are expected to start up successively since the fourth quarter next year.

           

"Today marks another positive step for Shell’s Chemicals business,” said Graham van’t Hoff, Executive Vice President for Royal Dutch Shell plc’s global Chemicals business and Chairman of CSPC Board. “With our strategic partner CNOOC, we are pursuing growth in the expanding Chinese petrochemicals market, and delivering to meet the needs of our customers. The focus is now on best in class project delivery.”

         

Dong Xiaoli, General Manager Assistant of CNOOC and General Manager of CNOOC Oil & Petrochemicals Co., Ltd and Vice Chairman of CSPC Board, said: “We are delighted to expand our cooperation with Shell by using its industry-leading technology. These government and regulatory approvals complete the official handover from CNOOC to CSPC and are an important step towards producing more petrochemicals for China’s growing domestic markets.”