Trading and Supply
Globally, Shell is the largest LNG provider and the leading LNG supplier to Greater China, with more than 14 million tons per annum (with BG combination), supplying LNG through long term contracts with CNPC and CNOOC.
Shell Energy China (SEC):
SEC is the trading entity for Shell in China, specializing in LNG and carbon emission trading. SEC is an integral part of Shell’s global trading network and one of the world’s leading carbon traders, and it is the first Wholly Owned Foreign Entity (WOFE) to participate in the Chinese emissions market.
For over 60 years Shell has been working hand in hand with Scuderia Ferrari in Formula One to develop high performance Shell Helix lubricants. Building on this legendary technical partnership, Shell provides Chinese customers with high-quality lubricants that can keep the engine clean and improve fuel economy.
China is the second largest lubricants market and the fastest-growing one across the world. Shell is the largest IOC lubricants manufacturer and marketer in China, with a double-digit growth of sales. Today China is the No.1 market for Shell core brands of Helix, Rimula and Tellus.
Currently, Shell has 4 lubricants blending plants in Tianjin, Zhapu and Zhuhai and one grease plant in Zhuhai in China. The Zhapu plant has the largest production capacity for Shell with a throughput of 400 million liters per year. The new Tianjin plant can produce 330 million liters per year and has the potential to expand to 500 million liters. Shell’s largest grease plant started commercial production in Zhuhai in the beginning of 2013.
Shell Helix is the official partner of China’s top-fight football league – Chinese Super league, and Shell Marine Products continue to be the market leader among IOCs.
Shell’s rapidly developing Retail network in China, the largest one among IOCs in the country, has over 1,100 branded sites in 12 Chinese municipal cities and provinces. China is the No.1 growth market for Shell’s retail business and we are working hard with our Chinese partners for further expansion to be the most preferred fuel retailer in China.
Shell operates its retail businesses via 7 JVs and 1 WOFE, and each day, Shell’s 15,000 frontline retail staff serve over 500,000 customers.
Shell provides high-quality fuel and convenience products differentiated by innovations and technology leadership, including the Main Grade Active Cleaning Technology and V-Power gasoline, and also the Non-Fuel Retailing offerings feature the flagship “Select” store and car care service etc.
Shell’s fuel scientists are based in Shell Shanghai Technology Centre, working with global fuel R&D centers to provide tailor-made R&D in fuels specifically fit for Chinese markets.
As one of the leading international bitumen suppliers, Shell offers a complete series of road bitumen products in China, and operates 4 bitumen manufacturing plants in Xi’an, Erzhou, Zhenjiang, Foshan and also work with selected Chinese partners to deploy PMB (Polymer Modified Bitumen) blending plants. Shell has made a unique contribution to the economic development and modernization of China by providing superior and high-quality bitumen products.
Shell Bitumen has been involved in many important projects over the years including the Hong Kong-Zhuhai-Macau Bridge, roads surrounding the Beijing Olympic Park, roofing bitumen supply for China Pavilion at Shanghai Expo in 2010 and the roads surrounding the Tiananmen Square.
CNOOC and Shell Petrochemicals Company Limited (CSPC), Guangdong Province:
Shell’s largest single investment in China to date is the US$4.1 billion CSPC petrochemical complex, a 50:50 joint venture between CNOOC and Shell (also known as the “Nanhai Project”).
Located in Daya Bay, Guangdong Province, the one of the largest Sino-foreign JV to-date started up in 2006 and has an annual ethylene capacity of 950,000 tons. Every year, it supplies around 2.7 million tons of ethylene and propylene derivative products to the China market to help meet the rapidly rising local demand.
CSPC has built and now operates the petrochemical complex with sustainable development principles. This ensures an economically sound project that contributes to social and economic progress in the local area, while maintaining a responsible approach to the environment and surrounding communities.
Its adoption of 13 licenses through international bidding ensures the complex operates at the cutting edge of technology and in an efficient and environmentally friendly way. For example, compared with traditional technologies, Shell's state-of-the-art Styrene Monomer/Propylene Oxide (SM/PO) process helps CSPC save at least 5.5 million tonnes of water every year. In another example, all of the waste gases emitted by the fuel tanks and the oil separators are recycled in CSPC to ensure an odour-free site.
Thanks to relentless efforts like these, CSPC has been recognized as an “Accredited Company in Environment Protection” by the Department of Environment Protection of Guangdong Province every year since 2008.
On 21st March 2016, Shell and CNOOC took Final Investment Decision (FID) on Phase 2 of the project, and it will increase the capacity of CSPC to 2.2 million tonnes of ethylene production. Shell will apply its proprietary OMEGA, SMPO and Polyols technologies to produce 150,000 tonnes per annum (tpa) of ethylene oxide, 280,000-480,000 tpa of ethylene glycol and 700,000 tpa of high quality polyols.