Shell petchem project in China

July 10, 1997 Shell has conducted a feasibility study for a project to integrate processes from oil refinery to petrochemical production in Huizhou, Guangdong of China. However, earlier this year it was reported that the group would abandon the project because it could not agree with its Chinese partners upon conditions for the oil refinery.
Shell has now changed its policy and will realise the petrochemical portion of the project first, mapping out a strategy to construct a petrochemical complex centring around an ethylene facility with a 450,000-tpy capacity. The group has already obtained the approval of the State Planning Commission and seems to have good prospects for starting construction.
A number of European and U.S. companies have plans to construct ethylene facilities in China. Shell is likely to become the first.
Under the petrochemical project, Shell plans to construct a 450,000-tpy ethylene facility, a 145,000-tpy LDPE facility, a 185,000-tpy linear LDPE facility, a 245,000-tpy PP facility, and facilities for high-grade alcohol by around 2000. Shell will have a 50 % share in the project, while CNOOC, Sinopec, Guangdong government, etc. will also participate in the joint project.