March 31, 2025 [Storage Terminals Magazine]- CNOOC and Shell Petrochemicals Company Limited has reached the Final Investment Decision for the Huizhou Phase 3 Ethylene Project (Phase 3 Project) and the Polycarbonate Project, marking the commencement of full-scale construction for both initiatives. This milestone strengthens CSPC’s presence in the high-end new materials sector while supporting Guangdong Province’s green petrochemical industry, the high-quality development of manufacturing in the Guangdong-Hong Kong-Macao Greater Bay Area, and the establishment of a global petrochemical hub in Huizhou and Daya Bay.
The Phase 3 Project will see the construction of 16 production units, including an ethylene unit with a capacity of 1.6 million tonnes per annum, alongside downstream units and supporting infrastructure. Scheduled for completion by 2028, the project will introduce several process technologies being applied for the first time in Asia and China, with seven units utilising Shell’s proprietary technology. Once operational, it will supply over 5 million tonnes of additional chemical products annually, including metallocene polyethylene, polypropylene, styrene, polyether polyols, ethylene glycol, alpha-olefins, synthetic alcohols, and polyalphaolefins. By addressing domestic demand for high-end chemicals, the project will contribute to advancing China’s petrochemical industry along the global value chain. Additionally, through project scope optimisation and the electrification of large compressor groups, the Phase 3 Project is expected to achieve a 20 percent reduction in carbon dioxide emissions, promote the use of renewable energy, and support the implementation of China’s “dual-carbon” strategy.
The Polycarbonate Project will establish a 260,000 tonnes per annum polycarbonate unit, a 240,000 tonnes per annum bisphenol A unit, and a 220,000 tonnes per annum carbonate diphenyl ester unit, along with supporting research and development facilities. Expected to be completed by the end of 2026, the project will incorporate Shell’s proprietary technology for the first time globally. It will offer advantages in cost-efficient feedstock and utilities, reduced energy consumption, and enhanced safety and environmental performance. Upon commencement, the project is anticipated to produce over 320,000 tonnes of high-performance specialty chemicals annually, including polycarbonate and carbonate solvents, which are essential to the transportation, construction, medical, and consumer goods industries.
CSPC CEO Gao Yu described the new projects as a continuation of the successful collaboration between China National Offshore Oil Corporation and Shell plc, following the achievements of CSPC Phase 1 and Phase 2. He highlighted the integration of resources across all project phases, including the refining portfolio of CNOOC Huizhou Petrochemical Company Limited, to improve operational and energy efficiency. The expansion is expected to strengthen CSPC’s position in the high-end new materials sector while supporting the domestic petrochemical industry’s extended value chain. Additionally, the projects are anticipated to enhance CSPC’s “Banyan Tree Effect,” attracting further downstream customers to the Huidong New Material Industrial Park near Huizhou Daya Bay, further reinforcing the region’s status as a global petrochemical hub.
As one of the largest single-site ethylene complexes in China, CSPC currently operates two project phases with a combined ethylene capacity of 2.2 million tonnes per annum. Upon completion of the Phase 3 and Polycarbonate Projects, total ethylene capacity will increase to 3.8 million tonnes per annum, supplying the market with over 10 million tonnes of high-quality, diversified petrochemical products.
CSPC Deputy CEO Ryan Wong emphasised that the new projects will strengthen the company’s transition towards becoming a highly differentiated product and solutions provider. By expanding research and development capabilities for product applications, CSPC aims to customise and enhance product performance, reinforcing its commitment to sustainable development and high-quality living standards. He further noted that the FID underscores the shareholders’ confidence in CSPC, the local government, and the overall growth of performance chemicals in China.
The launch of these projects represents new opportunities for CSPC’s corporate and professional development. With ongoing support from shareholders and the government, the company will collaborate with project management teams and contractors to ensure the safe and efficient operation of existing facilities while overseeing the smooth construction and timely start-up of new projects. CSPC remains committed to achieving its vision of becoming the leading petrochemical company in China.
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