Shell CNOOC Joint Venture Closes Major China Steam Cracker
CSPC is closing a major steam cracker in Huizhou due to feedstock supply issues and losses. The move follows disruptions linked to Middle East conflicts.
A major petrochemical joint venture between Shell plc and CNOOC LTD-H in China is preparing to shut down a large-scale steam cracker unit. According to reports from Singapore, the facility, operated by CNOOC and Shell Petrochemicals Company Limited (CSPC), is located in Huizhou, Guangdong province. The decision to halt operations stems from significant disruptions in feedstock supplies and ongoing economic challenges.
The specific unit slated for closure is a 1.2 million metric ton-per-year (tpy) cracker, which represents more than half of the complex's total 2.2 million tpy capacity. In a notice distributed to local customers, the venture indicated that polyethylene supplies would be suspended for an unspecified duration effective March 5. The disruption is reportedly linked to complications in the Middle East, which have impacted the delivery of naphtha.
