CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd, has confirmed its decision to significantly expand its petrochemical complex located in Daya Bay, Huizhou, South China.
The expansion will feature a third ethylene cracker with a planned capacity of 1.6 million tonnes per year. Ethylene, a key component in the production of plastics, and new downstream derivative units that will produce chemicals such as linear alpha olefins.
Additionally, the investment will include a facility designed to produce 320,000 tonnes of high-performance specialty chemicals, including polycarbonates and carbonate solvents, which play essential roles in everyday applications.
Polycarbonates contribute to the creation of impact-resistant plastics that can replace carbon-intensive steel, and carbonate solvents are critical in lithium-ion batteries, particularly for the electric vehicle and energy storage sectors.
The new facilities aim to cater to growing domestic demand in China, offering a variety of chemicals widely used in industries such as agriculture, construction, healthcare, and consumer goods.
“For more than two decades, CSPC has provided high value products to the market, becoming one of the largest petrochemical joint ventures in China.” said Huibert Vigeveno, Shell’s Downstream, Renewables and Energy Solutions Director.
“This new investment is a key enabler to realize CSPC’s transformation strategy towards more premium and highly differentiated chemical products. It is consistent with Shell Chemicals & Products strategy to pursue targeted growth at advantaged locations. It also demonstrates our strong partnership with CNOOC.”
The expansion, set to be completed in 2028, will strengthen CSPC’s competitiveness by extending its value chains, enhancing integration with the existing site, and driving innovation to meet the fast-evolving demands of the Chinese market.