Huizhou, Guangdong – Shell and CNOOC's 50:50 jv will near double CNOOC and Shell Petrochemicals Company's total ethylene capacity to 2m tonne/year within two years.
The overall project consists of a second refinery, one ethylene cracker, and 12 derivative units including one for ethylene oxide and ethylene glycol and one for styrene monomer and propylene oxide (SMPO/PDO).
Shell will bring its Omega and SMPO technologies to Nanhai. Its Omega technology for producing mono-ethylene glycol from ethylene oxide claims to have a conversion efficiency of over 99%, 9% higher than conventional processes. It also uses 20% less steam and generates 30% less waste water, Shell said.
"I am delighted to be working with CNOOC on this exciting new growth project,” said Graham van’t Hoff, executive vice president for Shell’s global Chemicals business. “This agreement builds on Shell’s Chemicals strategy to expand our presence in China working through our partnership with CNOOC.”
Chairman of CNOOC Yang Hua said: “We’re delighted that Shell will contribute to the project and our joint venture with industry-leading technology to produce petrochemicals for China’s growing domestic markets.”