CNOOC, Shell to expand Huizhou petrochemical complex

Chinese state-owned CNOOC and Shell signed a strategic agreement on 17 May to expand their petrochemical complex in Huizhou, Guangdong province in China.

The project, with total investment of 39.6bn yuan ($5.6bn), will build a new 1.5mn t/yr ethylene cracker with full integrated derivatives.

CNOOC and Shell have a 50-50 joint venture, the CSPC. The cracker will be CSPC's third cracker.

CSPC's first 1mn t/yr cracker and derivatives unit started operations in 2006. Its second cracker, with 1.2mn t/yr of ethylene and 600,000 t/yr of propylene nameplate capacities, started up on 2 May 2018.

The new project will have production for downstream propylene oxide/styrene monomer, polyols, ethylene glycol, polyethylene and polypropylene. Shell will apply its own technology for linear alpha olefins, for the first time.

Shell did not elaborate on downstream capacities and project timelines.

Downstream units include 400,000 t/yr of high density polyethylene, 300,000 t/yr of linear low density polyethylene, 380,000 t/yr of ethylene glycol, 400,000 t/yr of polypropylene, 250,000 t/yr of oxo alcohol, and 220,000/130,000 t/yr of phenol/acetone. A unit with capacity of 300,000/700,000 t/yr of propylene oxide/styrene monomer, the largest in China, is under construction and likely to start up by the end of 2020.