CSPCL Huizhou Petrochemical Plant / Shell

Beijing, China, February 22, 2016 -- CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd., has officially announced the third phase of expansion for its petrochemical complex in Daya Bay, Huizhou, Guangdong Province. This ambitious project, valued at $6.7 billion, represents a significant step forward in meeting China's growing demand for petrochemical products.

The expansion will include the construction of a third ethane cracker with a planned capacity of 1.6 million tonnes per year (tpy) of ethylene, boosting the complex's total ethylene production capacity to 3.8 million tpy. Ethylene serves as a key building block for plastics and other essential chemical products. Alongside the cracker, the project will add 16 downstream derivatives units producing specialty chemicals including linear alpha olefins, Bisphenol-A (240,000 topy), polycarbonates (260,000 tpy), and diphenyl carbonate (220,000 tpy).

Linear alpha olefins are vital for manufacturing detergent alcohol and synthetic lubricants, while polycarbonates are used in impact-resistant plastics that can replace carbon-intensive steel. Carbonate solvents play a critical role in lithium-ion batteries, supporting the electric vehicle sector and energy storage solutions.

The new facilities aim to meet domestic demand across various industries, including agriculture, construction, healthcare, and consumer goods.

Scheduled for completion by 2028, the project incorporates innovative technologies to reduce environmental impact. CSPC plans to electrify compressor units and increase renewable energy usage to achieve a 20% reduction in carbon dioxide emissions, aligning with China's carbon neutrality goals.

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