ExxonMobil May Build World-Scale Cracker in Pearl River Delta
ExxonMobil Corp. has signed a cooperative framework deal with the Guangdong Provincial People’s Government to advance talks surrounding a proposal to construct a chemical complex in the Huizhou Dayawan Petrochemical Industrial Park in southern China, the supermajor reported late Wednesday.
“Our agreement with the Guangdong Provincial Government demonstrates ExxonMobil’s interest in advancing this project from concept to completion,” John Verity, ExxonMobil Chemical Co.’s president, said in a written statement. “We value the government’s support and its experience in moving such a large-scale project forward.”
The proposed complex – subject to a final investment decision – would include a 1.2-million ton per year ethylene flexible feed steam cracker as well as two performance polyethylene lines and two differentiated performance polypropylene lines, ExxonMobil stated. The company, which said that startup could occur in 2023, noted that its decision to proceed hinges on the receipt of permits, project competitiveness and other factors.
According to ExxonMobil, the proposed Huizhou complex would help to advance the Chinese government’s national petrochemical development priorities such as self-sufficiency, diversified feedstock sources and rebalancing fuels versus chemicals. In addition to promoting discussions about the project, the framework agreement also confirms Guangdong province’s support for progressing the Huizhou liquefied natural gas (LNG) import terminal, the company stated. ExxonMobil noted that it would supply LNG to the receiving terminal.
Located in the Pearl River Delta in southern Guangdong province, the Huizhou Dayawan Petrochemical Industrial Park already hosts the CNOOC-Shell Nanhai Petrochemical Project joint venture, according to the Hong Kong Trade Development Council. According to Shell, the Nanhai complex can produce 950,000 tonnes per annum of ethylene and various volumes of other chemicals.
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