CSPC Takes Over the Ownership of CNOOC’s Ethylene Cracker Plant in China
50:50 joint venture of Shell Nanhai B.V.
(Shell) and China National Offshore Oil Corporation (CNOOC) obtains government
approval to set up an ethylene cracker plant in the ongoing petrochemical
complex.
China: Chinese government has officially
granted the ownership of CNOOC’s ongoing project, to set-up an ethylene cracker
plant, to the existing 50:50 joint venture between Shell Nanhai B.V. (Shell)
and China National Offshore Oil Corporation’s (CNOOC). CSPC joint venture will
have new ethylene production units built next to the existing petrochemical
complex located at Guangdong Province. The establishment of new plant will
increase its production capacity by 1.2 million metric tons per annum. The
construction of new petrochemicals complex has been 70% completed and is
expected to start operating by late 2017. Shell will incorporate its OMEGA,
styrene monomer and propylene oxide (SMPO) and polyols technologies for
production of 150,000 tons per year of ethylene oxide, 480,000 tons per year of
ethylene glycol in addition to smaller quantities of other ethylene derivatives.
TechSci
Research depicts that set up of a
new ethylene manufacturing facility in China will cater to the growing demand
for ethylene and its derivatives in the domestic market. Additionally,
increasing demand for ethylene from packaging and construction sector will
drive the demand for ethylene across the globe as well.
According to the recently published
report by TechSci Research, “Global Ethylene Market By End Use (Polyethylene (PE), Ethylene Oxide, Ethylene
Dichloride (EDC) & Others), By Region (Asia-Pacific, North America, Middle
East & Africa, Europe and South America), Competition Forecast and
Opportunities, 2011 – 2025”,
the global ethylene
market is expected to grow at a CAGR of around 11.26% during 2016-2025, on the
back of growing demands for flexible packaging materials, disposable items and
expanding real estate & construction sector, globally. Increasing awareness
among people about package labelling and its advantages, along with production
of light weight automobiles and expanding infrastructure sector in developing
countries is expected to result in augmented demand for ethylene and its
derivatives. Global ethylene market is controlled by three major players,
namely – SABIC, The Dow Chemical Company and Exxon Mobil Corporation. Few other
players operating in the global ethylene market are Sinopec Corporation,
LyondellBasell and Total S.A, France.