Shell and CNOOC Eye Closer Petchems Collaboration
China National Offshore Oil Corp. (CNOOC) Chairman Yang Hua and Shell CEO Ben van Beurden signed a memorandum of understanding (MOU) Oct. 16 that could lead to the further development of petrochemical manufacturing facilities in China’s Guangdong province, Shell reported Wednesday.
“I am pleased that CNOOC and Shell have taken a step towards furthering our already beneficial partnership at Nanhai,” Graham van’t Hoff, executive vice president for Shell’s global chemicals business, said in a written statement.
Under the MOU, CNOOC and Shell International Petroleum Co. Ltd. will explore their existing collaboration and the development of petrochemical manufacturing facilities at the companies’ Nanhai site in Huizhou, Guangdong, Shell stated. The company added that the objective of the MOU is to “establish a world-class integrated site that has scale and competitiveness.”
In May of this year, Shell and CNOOC reported that they had officially started up their second ethylene cracker at the Nanhai petrochemicals complex. Shell noted that the new cracker added approximately 1.2 million tonnes per year of ethylene capacity – more than twice the complex’s initial capacity. The company also stated that the new facility will feature a styrene monomer and propylene oxide (SMPO) plant, adding that it will be the largest of its kind in China when it starts operations.
“This news builds on the successful start-up of phase two of the site expansion in May and demonstrates the ongoing strategic importance of the site,” van’t Hoff said in Wednesday’s statement.
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