CNOOC and Shell Huizhou Phase III Project Officially Launched Full-scale Construction

Recently, CNOOC and Shell Petrochemical Co., Ltd. announced in Huizhou that its third-phase ethylene project and polycarbonate project have completed the final investment decision, marking the official start of the comprehensive construction work.

the third phase ethylene project of CNOOC and Shell will be committed to building a complete industrial chain covering 1.6 million tons/year ethylene cracking unit and 16 downstream chemical production units and supporting facilities. The project is expected to be put into operation in 2028, when a number of advanced technologies will be introduced for the first time in Asia and China, of which seven units will adopt Shell's proprietary technology. After the project is fully completed, it can supply more than 5 million tons of chemical products to the market every year, including metallocene polyethylene, polypropylene, styrene, polyether polyol, ethylene glycol, alpha olefin, synthetic alcohol, poly alpha olefin, etc. In addition, by optimizing the project layout and promoting the electrification of large-scale compressor units, the project will achieve 20% carbon dioxide emission reduction and actively promote the application of renewable green energy.

at the same time, the polycarbonate project will also be synchronized. The project will build a series of facilities including 260000 tons/year polycarbonate plant, 240000 tons/year bisphenol A plant, 220000 tons/year diphenyl carbonate plant, and equipped with advanced research and development facilities. It is expected to be completed and put into production by the end of 2026, when it can produce 320000 tons of high-performance specialty chemicals, including polycarbonate and carbonate solvents. It is worth mentioning that the project will adopt the proprietary production technology applied by Shell for the first time in the world, which has multiple advantages such as low cost, low energy consumption, safety and environmental protection.

Gao Yu, President of CNOOC and shell, stressed that the two new projects will be deeply integrated with the existing phase I and phase II resources and Huizhou petrochemical refining industry, improve the energy efficiency of refining and chemical integration, further extend the product value chain, and deepen the layout in the field of high-end new materials. This will effectively meet the urgent needs of domestic customers for the extension and development of the petrochemical industry chain, and at the same time give full play to the "banyan effect" of CNOOC and Shell, attract more downstream customers to settle in Huidong New Material Industrial Park, and contribute to the construction of a global petrochemical industry highland in Huizhou and Daya Bay.

As a petrochemical company established in 2000, CSPC currently has two-phase plants with a total ethylene production capacity of 2.2 million tons/year. It is one of the largest ethylene monomer petrochemical combined plants in China. With the completion of the two new projects, CSPC's total ethylene production capacity will jump to 3.8 million tons/year, and it can supply more than 10 million tons of high quality and diversified petrochemical products to the market every year.

Huang Zhongjin, vice president of CNOOC and Shell, said that the promotion of these two projects will help CNOOC and Shell achieve its strategic goal of becoming the preferred partner for highly differentiated product solutions. The company will continue to increase investment in product application research and development, improve research and development capabilities, provide customer-centric product solutions, and develop customized and high-end products. This is not only the practice of sustainable development and high-quality lifestyle, but also fully demonstrates the firm confidence of both shareholders in the future development of CNOOC and Shell, a good government-enterprise ecosystem and the growth of demand for China's high-performance chemicals market.