Shell-CNOOC Expands Guangdong Petrochemical Facility

CNOOC and Shell Petrochemicals Company Limited (CSPC) has announced a significant expansion of its petrochemical complex in Daya Bay, Huizhou, China, which includes a new ethylene cracker with a production capacity of 1.6 million tons per year and a facility for specialty chemicals producing 320,000 tons annually. This expansion aims to meet growing domestic demand for key chemical products such as polycarbonates and carbonate solvents, which are essential for industries including electric vehicles and construction. In a related development, Sinopec Shanghai Petrochemical Company is investing approximately $2.91 billion to upgrade its operations, which includes shutting down 18 existing refining units and installing new ones to enhance its annual ethylene capacity by 1.2 million tons. Both companies are focusing on technological advancements and efficiency to improve their market positioning within the competitive petrochemical landscape in China. These projects align with broader trends in the industry, emphasizing sustainability and innovation. The investments reflect a commitment to meeting domestic and international chemical demand while adhering to environmental standards.