LONDON (Alliance News) - Royal Dutch Shell PLC on Tuesday said it and partner China National Offshore Oil Corporation have made the final investment decision to expand their petrochemical joint venture in Huizhou in China's Guangdong Province.
The pair signed a heads of agreement in December 2015.
The project will cover the construction of an ethylene cracker and ethylene derivatives units at the site, which will increase capacity by more than 1 million tonnes per year, about double current capacity.
The site will also include a styrene monomer and propylene oxide plant, which the companies said would be the largest such facility ever built in China.
"I'm pleased to confirm that we are going ahead with this growth project. We are selective in our investments, and this decision underlines our confidence in the strong growth potential for chemicals in China. It will position Shell and our partner CNOOC well to help meet the growing needs of customers in this expanding petrochemicals market," said Graham van't Hoff, executive vice-president of Shell's global chemicals business.
Shell 'A' shares were down 0.3% to 1,692.50p, while Shell 'B' shares were trading down 0.4% to 1,699.00p.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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