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  Company News

The SMPO/POD Project of CSPC Started up Successfully

Issue Date:2021-04-15

China National Offshore Oil Corporation (CNOOC) and Shell Nanhai B.V. (Shell) today announce the successfully start-up of the new SMPO/POD units, marking the successful and full completion of the Phase 2 Project, of which all the other units have started up in 2018.  CSPC now supplies customers with up to six million tonnes per year of diverse, high-quality intermediate and performance chemicals.

 

The SMPO/POD project is constructed by CNOOC Huizhou Petrochemical Company Limited, invested and operated by CNOOC and Shell Petrochemicals Company Limited (hereinafter referred to as “CSPC”) with 6 new units. It includes one unit of ethyl benzene producing up to 750,000 tonnes per year, one unit of styrene monomer producing up to 630,000 tonnes per year and one of propylene oxide up to 300,000 tonnes per year, two units of polyether polyols producing up to 250,000 tonnes per year and another unit of polymer polyols producing up to 100,000 tonnes per year. These chemicals are used in a wide range of applications, such as construction and packaging, rubber, coatings, mattresses, furniture, electronics, clothing and automotive industry.

 

SMPO Unit

The project adopts Shell’s proprietary technologies. The SMPO unit uses Shell's upgraded Styrene and Propylene Oxide co-production process, which helps lowered equipment investment, improved products reliability and reduced water consumption and wastewater discharge. The POD units used the industry-leading Shell’s advanced technologies for polyols, which is the first application in China. Compared to traditional processes, Shell’s proprietary technologies further improve the overall energy efficiency and process safety, reducing carbon footprint and laying the foundation for an environmentally safe and efficient CSPC plant.

 

In May, 2020, CNOOC, Shell and the Guangdong Government signed a strategic cooperation agreement for CSPC Huizhou Phase 3 Ethylene Project, which would involve building a third ethylene cracker and deploying Shell’s advanced technology for linear alpha olefins for the first time in Asia.  Meanwhile, CNOOC and Shell also signed a Memorandum of Understanding in 2020, to explore a commercial-scale polycarbonate production unit at the site, using Shell’s diphenyl carbonate process technology.

 

POD Unit

 

Sun Dalu, Assistant President of CNOOC, Chairman and Secretary of the Party Committee of CNOOC Oil & Petrochemicals Co. Ltd, said “The successful start-up of the project has resulted in providing more premium chemical products for customers,  promoting  economic development of Huizhou City and the Guangdong-Hong Kong-Macau Greater Bay Area. We are dedicated to developing a trail-blazing and first-rate domestic petrochemicals industry in China.  This is an essential strategic goal as we develop the CNOOC oil and petrochemical business. External collaboration is a key driver to realising this. We will continue to deepen our collaboration with Shell, as we mutually seek a bright future for the high-quality development of the CNOOC oil and petrochemical business.”

 

Thomas Casparie, Executive Vice President for Shell’s global chemicals business, said: “In starting these units up together, we are improving the supply of essential chemicals to our Chinese customers, with greater efficiency than ever. This is the power of the strategic partnerships we have built with CNOOC and the Huizhou Government, alongside the power of technological innovation. I would like to thank the CSPC team for the safe and successful start-up, and I congratulate them on the culture of positivity and continuous improvement they have developed.”

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