China National Offshore Oil Corp. and Shell International Petroleum Co. Ltd. have signed a memorandum of understanding to explore their existing collaboration and the development of petrochemical manufacturing installations at the Royal Dutch Shell PLC subsidiary Shell Nanhai BV and CNOOC 50-50 joint venture CNOOC & Shell Petrochemicals Co. Ltd.’s (CSPC) existing petrochemical complex in the Daya Bay Economic & Technological Development Zone, Huizhou, Guangdong Province, China (OGJ Online, Nov. 2, 2016).

Signed on Oct. 16, the parties’ agreement seeks to establish a world-class integrated site with scale and competitiveness, Shell said.

Further details regarding proposed plans under the new MOU were not disclosed.

Alongside a 1.2 million-tonne/year cracker that more than doubled ethylene capacity of the Nanhai complex, CSPC also started up several associated derivative units at part of its Phase 2 expansion (OGJ, May 14, 2018, p. 25).

Once fully completed, the complex’s second expansion also will include startup of China’s largest styrene monomer and propylene oxide plant, the commissioning date of which has yet to be revealed.