September 14, 2024 – A significant leap forward has been achieved in the ambitious petrochemical landscape with the recent procurement milestone of the CNOOC-Shell Huizhou Phase III Ethylene Project. The project has successfully secured the purchase of nine ethylene cracking furnaces, marking a core and financially substantial component of the entire initiative. This accomplishment not only signals the commencement of a substantive new phase in construction but also fortifies the foundation for the future prosperity of CNOOC-Shell.
The CNOOC-Shell Huizhou Phase III Ethylene Project, with its colossal investment of 52.1 billion yuan and expansive planning, has garnered widespread industry attention. Encompassing an ethylene cracking unit with a capacity of 1.6 million tons per annum and a total of 18 downstream chemical production units, it forms a complete industrial chain from raw materials to finished products. Upon completion, CNOOC-Shell’s ethylene production capacity will reach 3.8 million tons per annum, accounting for approximately 8% of China’s total ethylene production capacity last year. Annually, it will supply over 11 million tons of petrochemical products to the market, effectively alleviating the domestic demand pressure for scarce petrochemical products.
Notably, the project also shines in technological application. Seven of its units adopt Shell’s proprietary technologies, which are at the forefront globally. Additionally, four units feature process technologies that are being applied domestically for the first time, marking a fresh breakthrough for China’s chemical industry. Particularly, the initial application of α-olefin and poly-α-olefin technologies in the Asia-Pacific region, along with the establishment of the world’s largest single metallocene polyethylene unit, will substantially elevate the technological level of China’s chemical industry.
The successful procurement of the nine ethylene cracking furnaces, following nearly a year of efforts, underscores CNOOC-Shell’s excellence in project management and procurement strategies. These furnaces, as the core equipment of the ethylene production units, are crucial to the project’s success in terms of both procurement quality and delivery schedule.
With the steady progress of the project, the CNOOC-Shell Phase III project team will organize the commencement meeting for the cracking furnaces, ensuring all preparations are in place. Simultaneously, the team will closely monitor equipment manufacturing supervision, expedition, and transportation to ensure smooth delivery to the project site and prompt installation. All parties involved will strive to ensure the project proceeds as planned, aiming for an early commissioning.
The implications of the CNOOC-Shell Huizhou Phase III Ethylene Project are profound. It will not only drive economic development in Huizhou and Guangdong Province, creating numerous job opportunities, but also stimulate the thriving of downstream industries, forming a complete industrial chain. Moreover, the project’s advanced technologies will enhance the overall level of China’s chemical industry and reduce the domestic market’s reliance on imported high-end green chemical products. Furthermore, adhering to sustainable development principles, the project adopts advanced energy-saving and emission-reduction technologies, setting a new benchmark for green development in the chemical industry.
Jointly funded by China National Offshore Oil Corporation (CNOOC) and Shell Group, the CNOOC-Shell Huizhou Phase III Ethylene Project boasts a total investment of approximately 52.1 billion yuan, providing a solid financial guarantee for its smooth construction. The project’s environmental assessment has also been approved, with a construction period of 36 months. Throughout the future construction process, CNOOC-Shell will fully leverage its advantages in project management and technology to ensure timely completion, injecting new vitality into China’s petrochemical industry and economic development.