The Nanhai Petrochemical Project is currently the largest Sino-foreign joint venture project for the petrochemical industry in China. The project was approved by the Chinese government in February 1998. Construction is due to start in 2002 and completion is scheduled for 2005.
Total investment in the project will amount to US$ 4.5 billion, making this the single largest foreign investment project in China's petrochemicals industry. The four partners in the project are: Shell Nanhai Ltd with 50%, China National Offshore Oil Corporation (CNOOC) with 40%, Guangdong Investment & Development Company with 5% and China Merchants Holdings Company Limited with 5%. CNOOC is the lead partner on behalf of the Chinese companies in all negotiations with Shell. The site for this major world scale petrochemical complex is at Daya Bay, Huizhou, within China's southern Guangdong Province. At the heart of the complex will be an 800,000 tonne per annum (tpa) ethylene cracker. Other major features of the complex are: a 560,000 tpa styrene monomer and 250,000 tpa propylene oxide plant, a 320,000 tpa mono-ethylene glycol plant, a 240,000 tpa polypropylene plant, a linear low density polyethylene/high density polyethylene plant of 300,000 tpa, and a low density polyethylene plant of 150,000 tpa, plus integrated support facilities and utilities. The whole complex has been designed to meet high environmental standards. The plant is designed to produce 2.3 million tpa of polyethylene, polypropylene and other chemical products for the domestic market and export.
The Shanghai Petrochemical Project is a Sino-British joint venture to build a new petrochemicals complex in Shanghai. The partners in the proposed undertaking include BP China Investments, a subsidiary of UK-based BP, and the local Shanghai Petrochemical Corp (SPC), a subsidiary of China Petrochemical Corp (SINOPEC). The venture will also involve key utility suppliers. The two companies will create a 50:50 joint venture company to operate from end 2001. A framework agreement for the project was concluded in October 1999 and the Chinese authorities approved the project in November 1999.  The new company will build an ethylene cracker with initial capacity of 650,000 tonnes/y. This will eventually rise to 900,000 tonnes/y. The cracker will probably be situated in Caojing near Shanghai. Total investment in the project is expected to be $2.5bn to $3bn and this will rank as the second largest foreign investment project in China - after Royal Dutch/Shell's planned $4.5bn petrochemicals complex in southern China. BP has already announced plans for the construction of a 260,000 tonnes/y acrylonitrile unit and a 200,000 tonnes/y polypropylene unit. When at full capacity, planned for 2005, the plant will be capable of turning out ethylene compounds and will include a 500,000 tonnes/y polyethylene unit, a 500,000 tonnes/y styrene unit and the plant will be producing polystyrene, ethanol and acetates. Ninety percent of the joint ventures output will be for internal consumption. 
