15th Jan 2025 06:50
(Alliance News) - Shell PLC on Wednesday said its joint venture is investing in petrochemical expansion in China.
The London-based oil major said CNOOC & Shell Petrochemicals Co Ltd, a joint venture between Shell Nanhai BV and CNOOC Petrochemicals Investment Ltd, has taken a final investment decision to expand its petrochemical complex in Daya Bay in Huizhou, south China.
The expansion is expected to be completed in 2028. Shell provided no financial details of the investment.
The expansion will include a third ethylene cracker with a planned capacity of 1.6 million tonnes per year of ethylene, used to make plastics, Shell said. It also will include associated downstream derivatives units producing chemicals including linear alpha olefins.
Linear alpha olefins are used to produce detergent alcohol and synthetic lubricants base oil.
The investment also includes a new facility that will produce 320,000 tonnes per year of "high-quality" performance specialty chemicals, such as polycarbonates and carbonate solvents.
"The new facilities, primarily aimed at meeting domestic demand in China, will produce a range of chemicals that are widely used in the agriculture, industrial, construction, healthcare and consumer goods sectors," Shell said.
Huibert Vigeveno, director of Downstream, Renewables & Energy Solutions, said: "This new investment is a key enabler to realise 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."
Shell shares had closed marginally lower at 2,662.50 pence each on Tuesday in London.
By Tom Budszus, Alliance News slot editor
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