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CNOOC, Shell to invest 5.6 billion U.S. dollars in new ethylene project

Xinhua News,GUANGZHOU
2020-05-18 01:04

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GUANGZHOU, May 17 (Xinhua) -- China National Offshore Oil Corporation (CNOOC), the largest offshore oil and gas producer in China, and Royal Dutch Shell, the world's leading energy and petrochemical conglomerate, signed a strategic cooperation framework agreement worth 5.6 billion U.S. dollars on Sunday.

Representatives in Guangzhou, capital city of south China's Guangdong Province, Beijing, and The Hague, signed the agreement via 5G video link.

The new cooperation, based on the CNOOC and Shell Petrochemical Company Limited, is the CNOOC and Shell Huizhou phase III ethylene project.

With an estimated annual output value of 38.2 billion yuan (nearly 5.4 billion U.S. dollars), the project is scheduled to start construction in the city of Huizhou, Guangdong Province, in 2021.

Founded in 2000, the CNOOC and Shell Petrochemical Company Limited is one of the largest chemical joint ventures of Royal Dutch Shell in China.

Ben van Beurden, CEO of Shell, said that the joint venture has developed into one of the largest and most competitive petrochemical facilities in China and the world.

CNOOC and Shell Petrochemical Company Limited had in total produced nearly 15 million tonnes of ethylene with a net profit of more than 20 billion yuan by the end of 2019, according to CNOOC Chairman Wang Dongjin.
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