CSPC Increases Investment to Chemical Complex in Huizhou


China National Offshore Oil Corporation (CNOOC) and Royal Dutch Shell issued a joint statement on November 2 announcing that their equally owned joint venture – CNOOC and Shell Petrochemicals Co., Ltd. (CSPC) - has secured all regulatory approvals for its additional investment and restructuring plan. The joint venture on November 1, 2016 acquired CNOOC’s new chemical complex under construction that includes an ethylene cracker and production facilities for chemical derivatives. Thereafter the project is now owned and operated by the joint venture.
The new project is next to CSPC’s exiting petrochemical complex in Daya Bay, Huizhou, Guangdong province, with 1.2 million t/a ethylene cracking capacity.
The expansion project also includes a SMPO facility that’s the largest of its kind in China. Construction is 70% done and it is expected to come on stream in Q4 2017.
The joint venture project uses several industry-leading technologies including Shell's proprietary OMEGA, SMPO and polyol technologies to produce 150 000 tons of ethylene oxide, 480 000 tons of ethylene glycol and 630 000 tons of styrene, 300 000 tons of propylene oxide, and 600 000 tons of high-quality polyether polyols per year. This will enable the CSPC to expand its portfolio and double production capacity to 6 million t/a.