CNOOC and Shell Petrochemicals (CSPC), a joint venture between Shell Nanhai and CNOOC Petrochemicals Investment, has announced plans to significantly expand its petrochemical complex in Daya Bay, located in Huizhou, southern China. The expansion aims to increase production capacity and strengthen CSPC’s market presence in China’s growing petrochemical sector.

Key Expansion Plans and Technologies

The Phase III expansion will include a third ethylene cracker with a capacity to produce 1.6 million tonnes of ethylene annually, a critical material for plastic production. Additionally, 16 downstream chemical production units will be built to produce a variety of chemicals, such as metallocene polyethylene, polypropylene, styrene, and ethylene glycol, among others.

CSPC will also incorporate Shell’s proprietary process technologies into seven of these units, marking their debut in Asia and China. A new facility to produce 320,000 tonnes per year of high-performance specialty chemicals, including polycarbonates and carbonate solvents, will also be constructed. The expansion is expected to increase CSPC’s total ethylene production capacity to 3.8 million tonnes annually, enabling the production of over 10 million tonnes of petrochemical products per year.

Sustainability and Future Goals

The project, which is set for completion by 2028, will help meet China’s rising demand for advanced chemical products. A dedicated polycarbonate production unit, with an annual capacity of 260,000 tonnes, is part of the expansion, and it is expected to be operational by 2026.

In line with China’s “dual carbon” strategy, CSPC has integrated sustainability measures into the project, including electrifying large compressor units and using renewable energy sources. These initiatives aim to achieve a 20% reduction in CO2 emissions from the expansion.

CSPC’s previous phases, including Phase I (2006) and Phase II (2018), have already established the complex as one of China’s largest petrochemical ventures, supplying over six million tonnes of chemical products annually. With this new investment, CSPC is positioning itself for continued growth, particularly in the premium and differentiated chemical products market.