Shell & CNOOC Greenlight Major Petrochemical Expansion In Southern China

Shell PLC SHEL, along with CNOOC Petrochemicals Investment Ltd., disclosed a final investment decision for the expansion of the petrochemical complex at Daya Bay, Huizhou, in southern China.

The project is part of the joint venture, CNOOC and Shell Petrochemicals Company Limited (CSPC), a partnership between Shell Nanhai B.V. and CNOOC Petrochemicals.

The expansion will add a third ethylene cracker at the Daya Bay complex, with an annual capacity of 1.6 million tonnes of ethylene, along with downstream units producing chemicals like linear alpha olefins.

Additionally, a new facility will manufacture 320,000 tonnes of high-performance specialty chemicals annually, including polycarbonates and carbonate solvents.

The new facilities are designed to cater to the growing domestic demand in China, producing chemicals used across sectors such as agriculture, industrial, construction, healthcare, and consumer goods.

This investment will enhance CSPC’s competitiveness by extending its value chains, integrating with the existing site, and fostering innovation to meet the increasing demand in the rapidly expanding Chinese market.

Last week, Shell’s subsidiary, Shell Offshore Inc., started production at the Whale floating production facility in the Gulf of Mexico.

Investors can gain exposure to the stock via VanEck Natural Resources ETF HAP and Macquarie ETF Trust Macquarie Energy Transition ETF PWER.

Price Action: SHEL shares are up 0.52% at $66.25 at the last check Wednesday.

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