CNOOC and Shell Petrochemicals Company Limited, a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd, has announced its 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, alongside associated downstream derivatives units producing chemicals such as linear alpha-olefins. The project also includes a new facility designed to produce 320,000 tonnes per year of high-performance speciality chemicals, including polycarbonates and carbonate solvents, which play a vital role in everyday applications.
Linear alpha-olefins are integral to producing detergent alcohol and synthetic lubricant base oils, while polycarbonates enable impact-resistant plastics as a lighter alternative to carbon-intensive steel. Carbonate solvents are essential for lithium-ion batteries, supporting the electric vehicle and energy storage sectors.
Primarily targeting domestic demand in China, the new facilities will produce a diverse range of chemicals used across agriculture, industrial, construction, healthcare, and consumer goods sectors. The investment will enhance CSPC’s competitiveness by extending its value chains, fostering further integration with the existing site, and enabling greater innovation to meet the evolving needs of the Chinese market.
“For more than two decades, CSPC has provided high-value products to the market, becoming one of the largest petrochemical joint ventures in China,” said Huibert Vigeveno, Shell’s downstream, renewables, and energy solutions director. “This new investment is a key enabler to realise CSPC’s transformation strategy towards more premium and highly differentiated chemical products. It aligns with Shell Chemicals & Products’ strategy to pursue targeted growth at advantaged locations and demonstrates our strong partnership with CNOOC.”
The expanded facilities are expected to be operational by 2028.
For more informaiton visit www.shell.com
