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In its latest investment, CSPC, a CNOOC-Shell JV, has pumped $8bn (60 billion yuan) to expand its petrochemical facilities in South China. The two projects are Huizhou Phase 3 Ethylene Project and the Polycarbonate Project. Both are already under construction and expect completion before 2030. CSPC: A CNOOC-Shell JV The world’s largest mobility retailer by number of sites, Shell, and China National Offshore Oil Corporation (CNOOC) formed the CNOOC-Shell JV in 2000. The duo has been involved in petrochemical projects in China and around the world. This latest financial investment decision will see the CNOOC-Shell JV not only expand the two petrochemical projects in Huizhou, South China, but also increase their influence in the “high-end new material” markets. Huizhou Phase 3 Ethylene Project The third phase of the project broke ground in May 2023. It consists of 18 sets of processing units, and an ethylene plant. The plant will produce 1.6 million tons per annum of high quality, green, chemicals products. The petrochemical project also reports to apply sustainable practices in the production process. There is ample focus on decarbonization, and the mentioned “green” petrochemical products. The $8bn investment by the CNOOC-Shell JV will also strengthen the Daya Bay Petrochemical Industry Park indirectly as projected market speculations point to. The third phase of Huizhou Ethylene Project follows the phases 1 and 2 that currently produce 2.2 million tons of petrochemical products per annum. Project factsheet Name: Huizhou Phase 3 Ethylene Project Client: CNOOC and Shell Petrochemical Companies (CSPC) Ground breaking date: 2023 Completion date: 2028 Current production by phases 1 and 2 projects: 2.2 million t/a Future estimated production: 3.8 million t/a The Polycarbonate Project in China The $8bn investment by CSPC will also see the building of three mega units plus R&D facilities. The three units will produce 260,000 t/a, 240,000 t/a, and 220,000 t/a of Polycarbonate, Bisphenol (A), and Carbonate Disphenyl Ester respectively. The completion date of the Polycarbonate project in China is slated for 2026. Project factsheet Name: Polycarbonate Project Client: CNOOC and Shell Petrochemical Companies (CSPC) Ground breaking date: 2023 Completion date: 2026 Future estimated production: 320,000 t/a The broader picture The $8bn investment by CNOOC-Shell JV to expand the two petrochemical projects in South China will also serve a visionary purpose. According to CSPC’s CEO, Gao Yu, this investment on the expansions will “enhance the operational and energy efficiency of integrated refining and chemical operations”. This will further help CNOOC-Shell JV, CSPC, leverage the “Banyan Tree Effect”. The banyan tree is often associated with stability and longevity in many cultures, predominantly in Asian cultures. Progress on the two petrochemical complexes in well on track with completion set to feature “high-standards” for what will become the best petrochemical company in China. The oil and gas industry is the backbone, if not one of the most important, of all the other industries in the world. It finds its touch in consumer goods, medicine, housing, construction, transportation, and nearly every other major sector in the world. The petrochemical sector is the banyan tree of the oil and gas industry, and that is not changing soon. |
