Page 154 - CW E-Magazine (28-1-2025)

News from Abroad

PROJECT UPDATE
Shell-CNOOC Joint Venture moves ahead on petrochemi-

cal complex expansion in China

CNOOC and Shell Petrochemicals
Company Ltd. (CSPC), a joint venture
between Shell Nanhai B.V. and CNOOC
Petrochemicals Investment Ltd, has taken
a final investment decision to expand
its petrochemical complex in Daya Bay,
Huizhou, south China.

The expansion will include a third
ethylene cracker with a planned capa-
city of 1.6-million tonnes per year of
ethylene, and associated downstream ion batteries and are essential for the to realise CSPC’s transformation stra-
derivatives units producing chemicals electric vehicles sector as well as energy tegy towards more premium and highly
including linear alpha olefins. storage. differentiated chemical products,” said
Mr. Huibert Vigeveno, Shell’s Down-
This investment also includes a new The new facilities, primarily aimed stream, Renewables and Energy Solu-
facility which will produce 320,000 at meeting domestic demand in China, tions Director.
tonnes per year of speciality chemicals, will contribute to CSPC’s competitive-
such as polycarbonates and carbonate ness by extending its value chains and The expansion is expected to be
solvents. drive further integration with the exist- completed in 2028.
ing site.
Linear alpha olefins are used to CSPC’s first phase started commer-
produce detergent alcohol and synthetic “For more than two decades, CSPC cial operations in 2006 and phase II
lubricants base oil. Polycarbonates has provided high value products to the started in 2018. With an annual ethy-
make impact-resistant plastics that can market, becoming one of the largest lene production capacity of 2.2-million
replace carbon-intensive steel, whilst petrochemical joint ventures in China. tonnes, CSPC supplies more than 6-
carbonate solvents are used in lithium- This new investment is a key enabler million tonnes of chemicals every year.

PROTECTING PROFITS
Oversupply in phenol-related products force Mitsui

Chemicals and Mitsubishi Chemical to mull joint action

Japanese firms – Mitsui Chemicals wide-ranging fields as raw materials has fallen, the companies stated. These
and Mitsubishi Chemical Corporation – for polycarbonate resin, phenolic resin, and other factors have combined to
are launching a “joint study” that would methyl methacrylate, epoxy resin, create a difficult business environment
examine ways to ensure stable supply paints and more, making them impor- for phenol-related products.
of phenol-related products amidst a tant to Japan’s economic security.
supply glut and falling domestic Mitsui Chemicals therefore decided
demand. Since 2022, however, the launch at its own discretion in April 2024 to
of multiple new production facilities close the 190,000-ton capacity phenol
Phenol-related products include throughout Asia – especially in China – plant at its Ichihara Works (Ichihara,
phenol, acetone, α-methylstyrene, bis- has led to a major oversupply and sub- Chiba) by fiscal 2026 with the possibi-
phenol A and methyl isobutyl ketone. sequent market slump for these pro- lity of closure, having determined that it
These products are in turn used in ducts, on top of which domestic demand had become difficult to secure the profits

154 Chemical Weekly January 28, 2025

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