CNOOC Shell Phase III Ethylene Project reached a significant milestone with the groundbreaking ceremony for its 1.6 million tons per year Ethylene plant at China Petrochemical Engineering Construction Co., Ltd. in Beijing on December 3, 2024. This marks the official commencement of the largest Ethylene plant project currently under construction in China. The Phase III project is set to build one of the world’s largest Ethylene cracking units, along with over ten downstream chemical plants.

This stepwise development of the complex is a key part of China's broader “dual carbon” strategy aimed at promoting green energy use and carbon reduction. The new Ethylene plant will not only boost domestic production of high-performance metallocene polyolefins, polyether polyols, and other high-end chemicals but also reduce China’s reliance on imported chemical products. With the focus on electrification and low-carbon designs, this project is a step toward achieving sustainable chemical production in the region.

Moreover, the introduction of α-olefin and poly-α-olefin technology in the Asia-Pacific region, along with the world's largest single metallocene polyethylene unit, reflects the project’s technological innovation. This development will not only meet the growing demand for high-quality chemical products in the Greater Bay Area but will also promote the overall advancement of the domestic chemical industry by introducing new, cutting-edge processes and products.

Additionally, the completion of the CNOOC Shell Huizhou Phase III Ethylene Project will elevate China’s chemical production capabilities, significantly improving its capacity to produce high-end chemicals and addressing the structural gaps in polyolefin product supply. The introduction of technologies from its partner company Shell, including advanced Ethylene oxide-Ethylene glycol, linear alpha-olefin (LAO) units, and Shell’s hydroformylation technology, will further optimize product quality and energy efficiency.

Further, the total investment for the Phase III project is expected to be around 52.1 billion yuan. The compound will comprise 16 new production units, including a 1.6 million tons per year Ethylene cracking unit, a 305,000 tons per year butadiene extraction unit, and a 600,000 tons per year metallocene linear low-density polyethylene (mLLDPE) unit. These plants will use sub-par technologies, including Shell’s proprietary processes and those from leading international technology providers such as TechnipFMC and LyondellBasell. These advanced technologies are expected to improve material and energy efficiency, reduce labor costs, and provide significant economic benefits. With the help of these streamlining procedures, upon completion, the Phase III project will push CNOOC Shell’s total Ethylene production capacity to 3.8 million tons per year, helping the company meet the increasing demand for new chemical materials and high-end chemicals in China. With the completion of this project, CNOOC Shell will be able to provide over 11 million tons of petrochemical products annually, further solidifying China’s leadership in the global petrochemical industry.