The Urethane Blog

Shell China Plans

LONDON (Alliance News) – Royal Dutch Shell PLC Tuesday said it has signed a deal with China National Offshore Oil Corp that will expand the existing partnership between the two companies and lead to more chemical facilities being developed in China.


The two companies already have a 50:50 joint venture in China, but has now signed a heads of agreements to expand the venture, with Shell joining an ongoing China National Offshore Oil Corp project to develop additional chemical facilities next to the joint venture's existing Nanhai petrochemical complex.

The new facilities will be managed, operated and owned by the existing joint venture between Shell and the Chinese company.

The heads of agreement covers the construction of an ethylene cracker and ethylene derivatives units, including a styrene monomer and propylene oxide plant. The new cracker will increase Nanhai's ethylene production capacity by over 1.0 million tonnes per year, about double its current capacity, said Shell.

Shell will supply its proprietary OMEGA and styrene monomer and propylene oxide technologies to produce ethylene oxide and ethylene glycol, increasing volumes and range of Nanhai?s high quality products, as well as enhance overall energy efficiency, Shell added.

The new petrochemical complex has already started to be constructed by the Chinese company and commercial production is expected in around two years time. The facility will convert a variety of liquid feedstocks into ethylene and derivative products, which are used in a wide range of consumer goods, including computers, plastic bottles, and washing liquids.

Shell 'A' shares were trading up 2.4% to 1,452.50 pence per share on Tuesday afternoon whilst 'B' shares were up 2.3% to 1,460.50 pence.

By Joshua Warner;; @JoshAlliance