CNOOC and Shell to Expand Daya Bay Petrochemical Complex in China

CNOOC and Shell Petrochemicals (CSPC) plans a major expansion. The Daya Bay complex in Huizhou, southern China, will see significant growth. This move strengthens CSPC’s market position. The expansion addresses China’s rising petrochemical demand.

Phase III Expansion: Key Technologies and Production Boost

The Phase III expansion includes a third ethylene cracker. This cracker will annually produce 1.6 million tonnes of ethylene. Manufacturers rely on ethylene for plastic production. Developers will construct sixteen downstream chemical units. These units will manufacture metallocene polyethylene, polypropylene, and other chemicals. Engineers will integrate Shell’s technologies into seven units, marking their debut in Asia and China. A new facility will generate 320,000 tonnes of specialty chemicals, including polycarbonates and carbonate solvents. The project will increase total ethylene production to 3.8 million tonnes annually. Producers will generate over 10 million tonnes of petrochemical products.

Sustainability and Future Market Goals

The project completes by 2028. It meets China’s demand for advanced chemicals. A polycarbonate unit with 260,000 tonnes capacity starts in 2026. CSPC integrates sustainability into the project. Large compressor units will be electrified. Renewable energy sources will be used. CO2 emissions will reduce by 20%. Previous phases established CSPC as a major player. It supplies over six million tonnes of chemicals annually. This new investment targets premium and differentiated chemical products. CSPC positions itself for continued growth.