MOSCOW (MRC) -- Shell announced it has signed a Memorandum of Understanding with CNOOC Oil & Petrochemicals Co Ltd (CNOOC) to explore its first commercial-scale polycarbonate (PC) production unit, which would be located at the CNOOC and Shell Petrochemical Company (CSPC) joint-venture chemicals complex in Huizhou, China, reported Kemicalinfo.
As an interim step, Shell has started constructing a PC development unit at its Jurong Island chemicals plant in Singapore.
An expanded and differentiated product range is a key part of Shell’s growth strategy for its chemicals business.
PC is a transparent and impact-resistant engineering polymer, and is used to make vehicle headlights, LED spotlights, UV-blocking windows and spectacles.
"We have an advantaged route to production and are looking at investment in a number of commercial-scale units to serve the growing number of polycarbonate customers," said Thomas Casparie, Executive Vice President of Shell’s global chemicals business.
The platform for this new product entry is Shell’s own patented diphenyl carbonate (DPC) process technology. Shell has developed this over recent years to achieve significant advantages in cost, safety, efficiency and CO2 footprint. Shell will now combine its DPC technology with melt-phase PC technology licensed from EPC Engineering & Technology GmbH in Germany.
Shell’s PC production units will also produce alkyl carbonates. These are used for lithium ion batteries which support the energy transition.
As MRC informed earlier, Shell Singapore restarted its naphtha cracker in Bukom Island in the first week of December 2019, following a two months maintenance shutdown since the beginning of October 2019. Thus, this cracker was taken off-stream for the turnaround on 1 October 2019. The cracker is able to produce 960,000 tons/year of ethylene and 550,000 tons/year of propylene.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,904,410 tonnes in the first eleven months of 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments increased from both domestic producers and foreign suppliers. The PP consumption in the Russian market was 1,161,830 tonnes in January-November 2019, up by 7% year on year. Deliveries of all grades of propylene polymers increased, with the homopolymer PP segment accounting for the largest increase.
Besides, Russia's estimated consumption of PC granules (excluding imports and exports to\\from Belarus) fell in January-November 2019 by 14% year on year to 70,700 tonnes (62,000 tonnes a year earlier), as per MRC's ScanPlast report.
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.
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