CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd, has taken a final investment decision to expand its petrochemical complex in Daya Bay, Huizhou, South China.
The expansion will include a third ethylene cracker with a planned capacity of 1.6 million tonnes per year of ethylene, a key building block to make plastics, and associated downstream derivatives units producing chemicals including linear alpha olefins.
This investment also includes a new facility that will produce 320,000 tonnes per year of high-performance specialty chemicals, such as polycarbonates and carbonate solvents, critical for everyday life.
Linear alpha olefins are used to produce detergent alcohol and synthetic lubricant base oil. Polycarbonates make impact-resistant plastics that can replace carbon-intensive steel, whilst carbonate solvents are used in lithium-ion batteries and are essential for the electric vehicles sector as well as energy storage.
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.
This investment will contribute to CSPC’s competitiveness by extending its value chains, driving further integration with the existing site, and enabling greater innovation capability to meet customer demand in the fast-growing Chinese market.
The expansion is expected to be completed in 2028.