How is the Huizhou Daya Bay Petrochemical Industrial Park (one of China’s seven major petrochemical industry bases) developing currently? Please also provide updates on major projects in the park, its master planning, and industrial supporting facilities.

Currently, the on-site consumption rate of petrochemical feedstocks in the Daya Bay Petrochemical Zone reaches 71%, forming competitive industrial chains centered on C2, C3, C4, C5, aromatics, and C9. In the first half of this year, the park achieved an output value of RMB 123.68 billion, representing a 49.5% year-on-year growth. After the commissioning of the CNOOC-Shell PC/DPC project, a highly competitive polycarbonate (PC) industrial chain will be established, driving the expansion and upgrading of the C2 chain. Upon completion and operation of LG Chem’s Phase III ABS project, the facility will become the largest ABS production base in South China, further extending the C4 and aromatic hydrocarbon chains. 1. Large-scale industrial platform: Petrochemical industry taking off; project clustering and development On November 1, 2002, the groundbreaking ceremony for the CNOOC-Shell South China Sea Petrochemical Project was held at the Daya Bay Petrochemical Zone site, marking the official launch of what was then China’s largest Sino-foreign joint venture project—and sounding the starting signal for Huizhou’s march toward becoming a world-class petrochemical industry hub. After nearly two decades of development and construction, the Daya Bay Petrochemical Zone has consistently taken large-scale crude oil refining and ethylene projects as its core drivers, promoting integrated petrochemical development. It now achieves annual refining capacity of 22 million tons and ethylene production capacity of 2.2 million tons—ranking among the top nationwide in terms of integrated refining-and-petrochemical scale. Shell, CNOOC, Sinopec, LG Chem, BASF, Clariant Chemical, Oude Oil Storage, ExxonMobil, Hengli… To date, the Daya Bay Petrochemical Zone hosts 104 invested projects with a total investment of RMB 250.2 billion. Projects invested by Fortune Global 500 enterprises and industry leaders account for nearly 90% of the total—highlighting a pronounced “head company” effect. Thirteen Fortune Global 500 enterprises are already present in the zone. In 2021, the park achieved an output value of RMB 185.9 billion, up 38.3% year-on-year; in the first half of this year, it reached RMB 123.68 billion—an increase of 49.5%. “With the commencement and settlement of projects such as the ExxonMobil Huizhou Ethylene Project and CNOOC-Shell Phase III Ethylene Project, the park is projected to achieve refining capacity of 32 million tons and ethylene capacity of 8 million tons annually by 2035,” said Cui Zhiyuan, Director of the Daya Bay Petrochemical Zone Management Service Center, expressing firm confidence. 2. Deepening petrochemical industrial chain: “One Core, Three Clusters” strategy fostering a petrochemical production-service industry cluster In the Daya Bay Petrochemical Zone, Clariant Chemical (Huizhou) Co., Ltd. has established its largest surfactant production base in China. Through neatly arranged pipe corridors, this base continuously draws ethylene oxide produced by CNOOC-Shell upstream, processes it, and supplies end-products widely used in pharmaceuticals, shampoos, shower gels, skincare products, household care items, and other industrial applications. Tang Fengling, Director of Public Affairs and Spokesperson for CNOOC-Shell, stated that via pipeline connections, CNOOC-Shell directly supplies its products to other enterprises within the park—reducing both parties’ storage and transportation costs while lowering safety risks associated with petrochemical product transport. Currently, relying on CNOOC-Shell’s stable, reliable, and diversified petrochemical product supply, 16 companies—including global leaders BASF, Clariant, and Mitsubishi Chemical—have established “wall-to-wall supply” relationships with CNOOC-Shell, enabling on-site conversion of 50% of its liquid petrochemical products. The under-construction Hengli (Huizhou) PTA project plans to source upstream feedstock from CNOOC Huizhou Refining & Chemical Co., Ltd.

The 2026 Global Top 50 Chemical Companies list has been released!

Sinopec’s projects in China include ethylene cracking units in Maoming, Zhenhai, and Henan, as well as aromatic complexes in Jiujiang and Fujian. Additionally, Sinopec is constructing an ethylene cracking unit and downstream polyethylene facilities in Kazakhstan. Beyond petrochemicals, Sinopec is collaborating with South Korea’s LG Chem to develop sodium-ion battery materials. Although Sinopec remains committed to its expansion plans, its UK-based partner INEOS—the British co-investor in Sinopec’s new ethylene cracking joint venture in Tianjin—holds a different view. INEOS is currently negotiating with Sinopec to sell its stake, citing “persistent market weakness.” 3. CNPC (China National Petroleum Corporation) 2025 Chemicals Sales: USD 41 billion As a state-controlled enterprise, CNPC is heavily investing in new production capacity. The company has completed newly built ethylene cracking units at its Jilin Petrochemical and Guangxi Petrochemical subsidiaries, with a total investment nearing USD 9 billion—pushing CNPC’s annual ethylene capacity beyond 10 million tons. Moreover, several additional projects remain underway. CNPC’s Dushanzi Petrochemical is constructing an ethylene cracking unit in western China, using locally sourced ethane as feedstock. With an annual capacity of 1.2 million tons, the plant represents an investment of approximately USD 3 billion. Separately, CNPC’s Blue Sea New Materials Co., Ltd. is building a specialized polyolefin project valued at USD 1.6 billion. 4. ExxonMobil 2025 Chemicals Sales: USD 40 billion ExxonMobil edged out Dow by a narrow margin of USD 12 million to become the largest U.S. chemical producer. However, overall, ExxonMobil’s recent focus has shifted toward downsizing. Impacted by a sharp downturn in the European petrochemical market, the company announced in late 2025 its decision to shut down its ethylene cracker in Fife, Scotland. ExxonMobil had previously attempted to sell the facility but failed, ultimately concluding that high operating costs and adverse economic conditions rendered continued operation unviable. Earlier, the company had already closed an ethylene cracker in France. Likewise, in Europe, ExxonMobil abandoned plans to build two plastic recycling plants in Belgium and the Netherlands—citing proposed EU regulations that would restrict the use of mass-balance accounting methods at such facilities. In the U.S., ExxonMobil has placed on hold its USD 8.6-billion petrochemical complex project in Calhoun County, Texas, attributing the delay to unfavorable market conditions. Due to insufficient demand, the company has also suspended a low-carbon hydrogen project in Baytown, Texas. 5. Dow Inc. 2025 Chemicals Sales: USD 40 billion Jim Fitterling has stepped down as Chief Executive Officer of Dow, having led the company since its spin-off from DowDuPont in 2019. He will remain with Dow as Executive Chairman of the Board. Karen S. Carter assumed the CEO role effective July 1, 2026. She joined Dow in 1994 and most recently served as Chief Operating Officer. During Jim Fitterling’s tenure, he vigorously advanced Dow’s decarbonization strategy.

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