MOSCOW (MRC) -- Shell Nanhai B.V. (Shell) and China National Offshore Oil Corporation (CNOOC) signed a Heads of Agreement (HOA) to expand their existing 50:50 joint venture (JV) in Huizhou, Guangdong Province, China, said Shell on its site.
Under the HOA, subject to final agreements and regulatory approvals, Shell is expected to join an ongoing CNOOC project to develop additional chemicals facilities next to the JV’s existing Nanhai petrochemical complex, which will be owned and operated by the existing JV.
The HOA includes the ongoing construction of an ethylene cracker and ethylene derivatives units, including a styrene monomer and propylene oxide (SMPO/PDO) plant. The new cracker will increase Nanhai’s ethylene production capacity by over 1 million tonnes per year, about double its current capacity.
"The expansion of the Nanhai petrochemical complex supports the Chinese long-term petrochemicals strategy. CNOOC and Shell are long-term partners. 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," said Yang Hua, Chairman of CNOOC.
As part of the HOA, Shell will apply its proprietary OMEGA and SMPO/POD technologies to produce ethylene oxide and ethylene glycol, increasing volumes and range of Nanhai’s high quality products, as well as enhance overall energy efficiency.
As MRC informed earlier, CNOOC and Shell Petrochemicals Company Limited (CSPC) has resumed its naphtha cracker following a maintenance turnaround this week.
CNOOC has already begun construction of the new petrochemical complex and commercial production from the new facilities is expected in around two years’ time. The expansion would increase the total ethylene production at the Nanhai petrochemical complex to around 2 million tonnes per year. The site, with a strong track record of reliable and safe operations, converts a variety of liquid feedstocks into ethylene and derivative products, which are used in a wide range of consumer goods, including computers, plastic bottles, and washing liquids.
China National Offshore Oil Corporation (CNOOC), the largest offshore oil & gas producer in China. CNOOC businesses cover the main segments of oil & gas exploration and development, engineering & technical services, refining and marketing, natural gas and power generation, and financial services.
Royal Dutch Shell plc is an Anglo-Dutch multinational oil and gas company headquartered in The Hague, Netherlands and with its registered office in London, United Kingdom. It is the biggest company in the world in terms of revenue and one of the six oil and gas "supermajors". Shell is vertically integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading.
MRC