CSPC, a Shell-CNOOC joint venture, invests in petrochemical complex expansion in China

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

CNOOC and Shell Petrochemicals Company Limited (CSPC) has announced plans to expand its petrochemical complex in Daya Bay, Huizhou, South China, following a final investment decision.

The expansion will include the construction of a third ethylene cracker with a capacity of 1.6 million tonnes per year, producing ethylene—a crucial component for plastics manufacturing. Additionally, the project will feature associated downstream derivative units, including facilities for linear alpha olefins production.

A new facility will also be built to produce 320,000 tonnes per year of high-performance specialty chemicals such as polycarbonates and carbonate solvents. These products serve essential applications: linear alpha olefins are used for detergent alcohols and synthetic lubricant base oils, polycarbonates create impact-resistant plastics that can replace carbon-intensive steel, and carbonate solvents are vital for lithium-ion batteries, supporting the electric vehicle and energy storage industries.

Primarily aimed at meeting China's domestic demand, the new facilities will produce chemicals essential to agriculture, industrial, construction, healthcare, and consumer goods sectors.

This investment will enhance CSPC’s competitiveness by extending its value chains, increasing integration with existing operations, and driving innovation to meet growing customer demand in the Chinese market.

“For over two decades, CSPC has delivered high-value products to the market, becoming one of China’s largest petrochemical joint ventures,” said Huibert Vigeveno, Shell’s Downstream, Renewables, and Energy Solutions Director.

“This new investment is key to advancing CSPC’s transformation strategy toward premium and differentiated chemical products. It aligns with Shell Chemicals & Products’ focus on targeted growth in strategic locations and underscores our strong partnership with CNOOC.”

The expansion is scheduled for completion in 2028.