CNOOC and Shell Petrochemicals Company Limited (CSPC) has been established as a Chinese Foreign Equity Joint Venture Company on 28 December 2000. It has built and now operates a USD4.3 billion world-scale petrochemicals complex in Daya Bay, Huizhou, Guangdong, covering 4.27 square kilometres of relatively flat land. It is one of the largest capital investments for a Sino-foreign joint venture project to date in the People's Republic of China.

The partners are Shell Nanhai B.V., a member of the Royal Dutch Shell, with a 50 per cent stake, and CNOOC Petrochemicals Investment Company Limited (CPIL), also with 50 per cent. CPIL is owned by China National Offshore Oil Corporation (CNOOC) (90%) and Guangdong Guangye Investment Group Company Limited (10%).

The CSPC petrochemicals complex incorporates the world’s most advanced technologies and utilizes modern management systems and international standards in the design, construction and operation of the complex. Its adoption of 13 patents through international bidding ensures it operates on the cutting edge of technology. The majority of its process units are world-scale. Additionally CSPC applies the principles of sustainable development throughout the design, construction and operation of the complex, demonstrating its strong commitment to the community and the environment.

The plant will be an integrated chemical complex including steam and electricity generation and other utility provisions, storage and handling and shipping facilities, as well as effluent treatment and environmental protection facilities. Many of the production facilities are world scale and all are being designed to international standards.

The heart of the complex is a world-scale condensate or naphtha cracker producing 800,000 tpa ethylene and 430,000 tpa propylene.

Downstream of the cracker, following plants and facilities have been built:

• 550,000 tpa styrene monomer and 250,000 tpa propylene oxide plant based on Shell's state of art technology, which is environmentally friendly than the conventional chlorohydrin route for the production of propylene oxide
• 320,000 tpa mono-ethylene glycol plant
• 60,000 tpa propylene glycol plant
• 135,000 tpa Polyols plant
• 240,000 tpa polypropylene plant
• Linear low density polyethylene/high density polyethylene plant of 200,000 tpa
• Low density polyethylene plant of 250,000 tpa
• Integrated support facilities and utilities for the complex.

In total, the complex will produce some 2.3 million tpa of products, generating up to some USD 1.7 billion in products sales each year. It will supply products primarily to Guangdong and the high consumption areas of China's coastal economic zones where demand is projected to remain strong.

Company website: www.cnoocshell.com