Daya Bay Petrochemicals Industrial Zone in Huizhou Municipality

In October 2000, the CNOOC and Shell Petrochemicals Project, with an annual production of 800,000 tons of ethylene, was launched on Daya Bay, Huizhou, Guangdong after a long period of research and verification. The top leaders of both cooperative parties, Royal/Dutch Shell Group of Companies and China National Offshore Oil Corporation, agreed unanimously that Daya Bay is one of the rare choicest places in the world for the development of petrochemical industries. From then on, the Bay has increasingly become the focus of international attention in the field of petrochemical industries and relative industries.

Decision of Guangdong Province to Build a Petrochemical Industrial Zone on Daya Bay:
With the launch and smooth progress of the CNOOC and Shell Petrochemicals Project, the governments of Guangdong Province and Huizhou Municipality decided to build on Daya Bay a world level petrochemical industrial zone at a high starting point, high standards and high quality after sufficient research and verification were completed by experts under the leadership of the governments. The zone was named Daya Bay Petrochemicals Industrial Zone.

The goal of construction for the Zone is to build a world level petrochemical industrial base in 5 to 10 years time by taking full advantage of the leading effect of the CNOOC and Shell Petrochemicals Project and introducing internationally advanced enterprises and technology under the principles of supply chain integration, energy conservation and environmental protection, optimum distribution of resources and mutual supply of raw material. The construction of the Zone adheres to the strategy of sustainable development, strictly following internationally accepted environmental standards and adopting advanced technologies in environmental protection, thus lowering the impact on environment to the lowest point.

Advantageous Conditions in the Construction of the Daya Bay Petrochemicals Industrial Zone:
The construction of a world level petrochemicals industrial zone not only enjoys advantageous conditions in the common sense, but also unique conditions in the following ways:

1. Advantages in broad heading. The CNOOC and Shell Petrochemicals Project is the leading project in the Zone, with a total investment of about 4 billion US dollars, 50% from China and 50% from foreign investors. With 11 sets of equipment, the annual production capacity of the Project is 800,000 tons of ethylene and the annual production of petrochemicals amounts to more than 2.3 million tons. The structure of annual production is as follows: 250,000 tons of low density polyethylene, 200,000 tons of linear low/high density polyethylene, 240,000 tons of polypropylene, 155,000 tons of butadiene, 550,000 tons of styrene, 250,000 tons of epoxy propane (most of which is for the use of the Project), 322,000 tons of ethylene glycol, 60 tons of propylene glycol, 185 tons of polyether polyalcohol, and 294,000 tons of drippolene. When completed, the Project will provide rich raw material for downstream industries. Beside the CNOOC and Shell Petrochemicals Project, the Zone also hosts a liquefied natural gas (LNG) power plant with a capacity of 2 million kilowatts, which simultaneously provides pipeline-transported natural gas for the Zone.

The unique advantageous conditions for the development of a world level petrochemicals industrial zone on Daya Bay

*Advantages in broad heading

250,000 T low density polyethylene 200,000 T linear low/high density polyethylene

240,000 T polypropylene 155,000 T butadiene
Nanhai Petro-
chemical Plant 550,000 T styrene 250,000 T epoxy propane
800,000 T
ethylene project 322,000 T ethylene glycol 60 T propylene glycol

185 T polyether polyalcohol 294,000 T drippolene

2 million KW
LNG power plant Natural gas is an important raw material for petrochemical industries.

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