CSPC Petrochemical expansion in China targets 2028 completion

CNOOC and Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd, has announced its decision to significantly expand its petrochemical complex in Daya Bay, Huizhou, southern China.

Central to this expansion is the construction of a third ethylene cracker, with a planned annual capacity of 1.6 million tonnes of ethylene, a vital component in plastic production. Additionally, CSPC will develop downstream units to produce linear alpha olefins, used in synthetic lubricants and detergents, and high-performance specialty chemicals, such as polycarbonates and carbonate solvents.

The new facilities will include a 320,000 tonne-per-year plant for these specialty chemicals, which play a crucial role in applications such as lithium-ion batteries for electric vehicles and energy storage. This development aligns with China’s growing domestic demand for chemicals across diverse sectors including agriculture, construction, and healthcare.

The expansion underscores CSPC’s commitment to enhancing competitiveness and innovation while bolstering its integration with the existing site. According to Shell’s Downstream, Renewables, and Energy Solutions Director, Huibert Vigeveno, “This new investment is a key enabler to realise CSPC’s transformation strategy towards more premium and highly differentiated chemical products. It is consistent with Shell Chemicals & Products strategy to pursue targeted growth at advantaged locations. It also demonstrates our strong partnership with CNOOC.”

With completion targeted for 2028, the project represents a significant milestone for CSPC, which has been a key player in China’s petrochemical industry for over two decades.