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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.

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