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CNOOC and Shell Petrochemicals Complex Holds Start-up Ceremony

Source: www.gulfoilandgas.com 3/31/2006, Location: Asia

The CNOOC and Shell Petrochemicals Company Limited (CSPC), 50 per cent owned by Shell Nanhai BV, a member of the Shell Group, marked the successful start of operations of its new $4.3 billion petrochemicals complex with a ceremony today. Construction of the complex, 50 per cent owned by the CNOOC Petrochemicals Investment Company Limited, was completed at the end of December 2005 and the ethylene plant started operations on 29 January. The new plant will produce 2.3 million tonnes of products per year to primarily supply Guangdong and the high consumption areas of China’s southeast coastal economic zones.

Shell Downstream Executive Director Rob Routs was a guest of honour at the event along with Guangdong Executive Vice Governor Zhong Yangsheng, Huizhou Party Secretary Liu Jinzhou, and CNOOC President Fu Chengyu. He said: “The completion of this massive and complex petrochemical project to expected time and budget is a considerable achievement. This is the beginning of decades of productive life for the plant serving the Chinese people by helping to meet their rapidly growing demand for high quality petrochemicals.”


Fact Sheet
The CNOOC and Shell Petrochemicals Company Limited (CSPC) has built and is operating a US $4.2 billion petrochemicals complex in Daya Bay, Huizhou Municipality, Guangdong. It is one of the largest capital investments in a Sino-foreign joint venture project in China. The partners are Shell Nanhai BV, a member of the Shell Group, with a 50 per cent stake, and CNOOC Petrochemicals Investment Limited (CPIL), also with 50 per cent. CPIL is owned by China National Offshore Oil Corporation (CNOOC) (90%) and Guangdong Investment & Development Company (10%). The project incorporates some of the world’s most advanced technologies and uses modern management systems and international standards in the design, construction and operation of the complex. CSPC is applying the principles of sustainable development throughout the design, construction and operation of the complex, demonstrating its strong commitment to the community and the environment.

Location
The complex is in the Donglian area, Daya Bay Economic and Technological Development Zone, Huizhou Municipality in Guangdong Province, on the north coast of Daya Bay, some 80 km northeast of Hong Kong Island. It covers 2.5 square kilometres. The condensate or naphtha feedstock imports for the project are received on a berth next to Mabianzhou Island, and transferred to the petrochemicals complex by an 11-kilometre, undersea pipeline. Liquids, consumables and chemical products are mostly imported and exported from allow access for ships up to 40,000 dwt. Water for the plant is being supplied from the nearby Fengtian Reservoir by two buried pipelines, and supplemented by water piped from the Xizhi and Dong rivers. The complex will generate most of its own electrical power and steam, but it will also be connected to the provincial power grid.

The complex
The plant is 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 have been designed to international standards. The heart of the complex is a world-scale cracker producing 800,000 tpa ethylene and 430,000 tpa propylene. It is designed to take naphtha as well as heavy feedstock such as condensate, the first of its kind in China. Downstream of the cracker, the following plants and facilities are:

550,000 tpa styrene monomer and 250,000 tpa propylene oxide (SM/PO) plant
320,000 tpa mono-ethylene glycol (EO/EG) plant
60,000 tpa propylene glycol plant
135,000 tpa polyols plant
240,000 tpa polypropylene plant (PP)
High density polyethylene plant (HDPE) of 200,000 tpa
Low density polyethylene plant (LDPE) 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. It will supply products primarily to Guangdong and the high consumption areas of China’s southeast coastal economic zones where demand is projected to remain strong.

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