CNOOC, Shell to build world-scale petrochemical complex in China

By OGJ editors

HOUSTON, Nov. 6 -- China National Offshore Oil Corp. (CNOOC) and Shell Petrochemicals Co. Ltd. units have agreed to proceed with the joint venture construction of a $4.3 billion world-scale petrochemical complex in southern China.

The decision followed the completion of a 20-month definition phase during which the JV finalized basic design engineering packages, updated an environmental and social impact assessment, prepared bid packages for the engineering, procurement, and construction phase of the project, and arranged financing.

The JV also has called for bids and expects to award before yearend major contracts having a total value of more than $1 billion for the process plants, plant automation, and project management services. Major construction work is expected to start early next year on the 430 hectare site at the Daya Bay Economic and Technical Development Zone in Guangdong Province, with start-up slated for late 2005.

Shell Nanhai BV and CNOOC Petrochemicals Investment Ltd. (CPIL), each with a 50% shareholder interest, signed a JV contract in October 2000. CPIL is 90% owned by CNOOC and 10% by the Guangdong Investment & Development Co.

Project details
Major features of the project are an 800,000 tonne/year (t/y) ethylene cracker, a 560,000 t/y styrene monomer and 250,000 t/y propylene oxide plant, a 320,000 t/y ethylene glycol plant, and a 240,000 t/y polypropylene plant. The complex also will contain a high-density, 200,000 t/y polyethylene plant with capability to produce linear low density polyethylene and a low-density, 250,000 t/y polyethylene plant with integrated support facilities and utilities. The entire complex has been designed to international standards to protect the environment and use energy and material efficiently.

A consortium serving as project manager will help manage the project until the plant starts up. It is composed of Bechtel Group Inc., Sinopec Engineering Institute, and Foster Wheeler Corp. (OGJ Online, Mar. 15, 2001).

When the complex is completed, the JV will produce about 2.3 million t/y of products, generating up to $1.7 billion in products sales, primarily supplying customers in Guangdong and the high consumption areas of China's coastal economic zones. The project is expected to strengthen industrial development in Huizhou, attract secondary manufacturing and service industries, and create job opportunities directly and indirectly.

"Daya Bay has a good investment environment and market prospects, and this project can greatly contribute to the economic development of China's East Coast," CNOOC Pres. Wei Liucheng said. "I believe that working together with the local government and Shell, we can build a world-class petrochemical plant, (and) create a pool of talent with an international mindset. . ." he said.

"This project has an excellent fit with CNOOC's long-term global strategy to develop its downstream business, and it is an important step forward for CNOOC in its aim to be an international petroleum company with good integration of its upstream and downstream business," he added.

Evert Henkes, CEO of Shell Chemicals Ltd., also said he was pleased that the project is going ahead on schedule. "Nanhai has an excellent fit with Shell Chemicals' global strategy to focus on the production of major petrochemical building blocks and polyolefins to large industrial customers," he said.

Related Articles

West Cornwall Township hears from Sunoco Logistics

12/12/2014

Sunoco Logistics Partners outlined its safety systems during a West Cornwall Township meeting in Pennsylvania on Nov. 10.

Cost-benefit believability

12/08/2014 In anticipation of what might become the costliest federal regulation in US history, Congress should join the Supreme Court in reviewing the Enviro...

EPA poses tighter ground-level ozone pollution controls

12/08/2014 The US Environmental Protection Agency proposed reducing ground-level emissions limits to 65-70 ppb from its current level of 75 ppb. It also will ...

EPA will set RFS requirements for this year next year

12/01/2014

How bad does regulation of the Renewable Fuel Standard have to become before the US Congress ends a program broken beyond repair?

Asia-Pacific refining primed for capacity growth

12/01/2014

Global crude oil refining capacity in 2014 edged lower from 2013 (OGJ, Dec. 2, 2013, p. 34), according to the latest OGJ Refinery Survey.

Deloitte: US gas supplies rebuilt since last winter, EIA's Sieminski says

11/24/2014 The biggest issue this winter could be electricity generation in New England because of pipeline constraints rather than a drawdown of stored natur...

Petrobras initiates start-up of units at Abreu e Lima refinery

11/24/2014 Petroleo Brasileiro SA (Petrobras) has received permission to commission units at its Abreu e Lima refinery (Rnest) at the port of Suape, near Reci...

MRPL wraps Mangalore refinery expansion project

11/13/2014 Mangalore Refinery & Petrochemicals Ltd. (MRPL), a subsidiary of Oil & Natural Gas Corp. Ltd., has fully completed the long-delayed Phase 3...

Low-cost revamp enhances feedstock profitability for Chinese integrated complex

11/03/2014 In 2010, Liaoning Huajin Tongda Chemicals Co. Ltd. (Huajin), a subsidiary of China North Industries Group Corp. (Norinco), completed a series of re...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected