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Shell's (RDS.A) JV Commissions Petrochemical Unit in China
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Royal Dutch Shell Plc and CNOOC Oil & Petrochemicals Co. Ltd., a subsidiary of CNOOC Limited (CEO - Free Report) , announced the commencement of petrochemical facilities to serve the increasing demand for chemicals in major markets of China.
Established in late 2000, CNOOC and Shell Petrochemical Company (“CPSC”) is a joint venture to address the growing demand for high-quality petrochemical products for customers. Notably, this is one of the largest chemical joint ventures of Shell in China, which involves Shell Nanhai BV, a unit of Shell, and CNOOC Petrochemicals Investment Limited as partners, with each holding a 50% stake.
In May 2020, Shell, CNOOC entered a cooperation agreement with the Huizhou government to expand the petrochemical complex in the city of Huizhou, Guangdong Province, China.
The joint venture commenced operations at the largest styrene monomer propylene oxide (“SMPO”) unit in China, which is significant progress in the supply of performance polyols. The unit produces up to 630 000 tpy of styrene monomer and 300 000 tpy of propylene oxide. These are used in numerous applications from household appliances to packaging and computers.
Notably, the SMPO facility is the second unit of its type that has been established at the petrochemicals complex in Huizhou. The highly efficient unit, which is operated by CPSC, consumes less energy that makes design improvements by implementing Shell’s SMPO process technology.
Moreover, three new facilities process propylene oxide into up to 600,000 tonnes per year of polyols with the help of Shell’s advanced polyols technologies. Notably, they offer customers a range of polyols — which include performance products for specialized uses, namely coatings, adhesives, sealants and elastomers — and foams used in bedding, furniture and cars.
The commencement of the new units marks the completion of phase-two expansion of the CSPC petrochemical complex, which included the construction of a 1.5-million-tonnes-per-year ethylene cracker. The complex provides up to six million tonnes per year of diverse, high-quality intermediate and performance chemicals, which includes polyols, ethylene glycol, polyethylene and polypropylene.
CSPC plans for the third phase of expansion at the site, which will likely involve building a third ethylene cracker by deploying Shell’s advanced technology for linear alpha olefins for the first time in Asia. In 2020, Shell and CNOOC signed a memorandum of understanding to explore a commercial-scale polycarbonate production unit at the site.
On its part, the start-up resulted in providing high-quality chemical products for customers and facilitates the economic development in the city of Huizhou and the Guangdong-Hong Kong-Macau Greater Bay Area.
Company Profile & Price Performance
Shell is one of the primary oil majors — a group of U.S. and Europe-based big energy multinationals — with global operations. The company is fully integrated, as it participates in every aspect related to energy from oil production to refining and marketing.
Shares of the company have outperformed the industry in the past six months. The stock has gained 58.8% compared with the industry’s 54.9% growth.
Zacks Rank & Other Stock to Consider
The company currently flaunts a Zack Rank #1 (Strong Buy).
Chevron’s earnings for 2021 are expected to rise 13.1% year over year.
Callon’s earnings for 2021 are expected to grow 44.6% year over year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
Shell's (RDS.A) JV Commissions Petrochemical Unit in China
Royal Dutch Shell Plc and CNOOC Oil & Petrochemicals Co. Ltd., a subsidiary of CNOOC Limited (CEO - Free Report) , announced the commencement of petrochemical facilities to serve the increasing demand for chemicals in major markets of China.
Established in late 2000, CNOOC and Shell Petrochemical Company (“CPSC”) is a joint venture to address the growing demand for high-quality petrochemical products for customers. Notably, this is one of the largest chemical joint ventures of Shell in China, which involves Shell Nanhai BV, a unit of Shell, and CNOOC Petrochemicals Investment Limited as partners, with each holding a 50% stake.
In May 2020, Shell, CNOOC entered a cooperation agreement with the Huizhou government to expand the petrochemical complex in the city of Huizhou, Guangdong Province, China.
The joint venture commenced operations at the largest styrene monomer propylene oxide (“SMPO”) unit in China, which is significant progress in the supply of performance polyols. The unit produces up to 630 000 tpy of styrene monomer and 300 000 tpy of propylene oxide. These are used in numerous applications from household appliances to packaging and computers.
Notably, the SMPO facility is the second unit of its type that has been established at the petrochemicals complex in Huizhou. The highly efficient unit, which is operated by CPSC, consumes less energy that makes design improvements by implementing Shell’s SMPO process technology.
Moreover, three new facilities process propylene oxide into up to 600,000 tonnes per year of polyols with the help of Shell’s advanced polyols technologies. Notably, they offer customers a range of polyols — which include performance products for specialized uses, namely coatings, adhesives, sealants and elastomers — and foams used in bedding, furniture and cars.
The commencement of the new units marks the completion of phase-two expansion of the CSPC petrochemical complex, which included the construction of a 1.5-million-tonnes-per-year ethylene cracker. The complex provides up to six million tonnes per year of diverse, high-quality intermediate and performance chemicals, which includes polyols, ethylene glycol, polyethylene and polypropylene.
CSPC plans for the third phase of expansion at the site, which will likely involve building a third ethylene cracker by deploying Shell’s advanced technology for linear alpha olefins for the first time in Asia. In 2020, Shell and CNOOC signed a memorandum of understanding to explore a commercial-scale polycarbonate production unit at the site.
On its part, the start-up resulted in providing high-quality chemical products for customers and facilitates the economic development in the city of Huizhou and the Guangdong-Hong Kong-Macau Greater Bay Area.
Company Profile & Price Performance
Shell is one of the primary oil majors — a group of U.S. and Europe-based big energy multinationals — with global operations. The company is fully integrated, as it participates in every aspect related to energy from oil production to refining and marketing.
Shares of the company have outperformed the industry in the past six months. The stock has gained 58.8% compared with the industry’s 54.9% growth.
Zacks Rank & Other Stock to Consider
The company currently flaunts a Zack Rank #1 (Strong Buy).
Some other top-ranked players in the energy space are Chevron Corporation (CVX - Free Report) and Callon Petroleum Company , each currently sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Chevron’s earnings for 2021 are expected to rise 13.1% year over year.
Callon’s earnings for 2021 are expected to grow 44.6% year over year.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>