The Chinese oil and gas company China National Offshore Oil Corporation (CNOOC) and the British Shell Petrochemicals Company Limited (CSPC), a joint venture between Shell Nanhai B.V. and CNOOC Petrochemicals Investment Ltd, have concluded a final investment agreement for the expansion of the petrochemical complex in Daya Bay (Daya Bay, Huizhou) in Southern China. This is reported in a press release from Shell.
The project includes the construction of a third ethylene processing plant (a key component for the production of plastics) with a capacity of 1.6 million tons per year and a plant for processing chemical derivatives, including linear alpha-olefins, which are used to produce detergents and base oils for synthetic lubricants.
In addition, the project provides for the construction of a new plant with a capacity of 320 thousand tons of special chemicals per year (polycarbonates and carbonate solvents) used for the production of high-impact plastics capable of replacing carbon-intensive steel, and lithium-ion batteries.
The completion of the new project is expected in 2028.
The new enterprises, focused primarily on meeting domestic demand in China, will produce a range of chemicals widely used in agriculture, industry, construction, healthcare, and consumer goods production.
The project aims to increase CSPC's competitiveness by expanding production and distribution chains, further integrating with the enterprise and introducing innovations in the fast-growing Chinese market, as well as strengthening Shell Chemicals & Products' positions in the most profitable regions through a partnership with CNOOC.
CNOOC is a Chinese oil and gas company with headquarters in Hong Kong. The company's shares are traded on the Hong Kong and Shanghai stock exchanges.
Shell plc is a British multinational oil and gas company with headquarters in London (England).
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