Our strategy seeks to reinforce our position as a leader in the oil and gas industry, while helping to meet global energy demand in a responsible way. Safety and environmental and social responsibility are at the heart of our activities.

two shell employees working at processing facility

Shell in China

As a leading global group of energy and petrochemical companies that is high up on the Fortune 500 list, Shell helps meet the world’s demand for energy in economically, environmentally and socially responsible ways. We embrace the ambition to be the most competitive and innovative energy company in the world.

Our business relationship with China dates back to more than a century ago, testifying to our long-term commitment to this country.

Today, all of Shell’s core businesses – Upstream, Integrated Gas and New Energies, Downstream and Projects & Technology – are active in China. With win-win partnerships with all of the major national oil companies in China, including China National Petroleum Corporation (CNPC), China Petroleum & Chemical Corporation (Sinopec), China National Offshore Oil Corporation (CNOOC) and Shaanxi Yanchang Group Company (YCG), we aim to achieve End-to-End Integration of the whole value chain from Upstream molecules to Downstream markets and extract maximum value for business partners in and outside China.

To realise these goals, we are focusing on four strategic business priorities:

  • International cooperation with Chinese partners overseas to bring energy back to China;
  • Developing unconventional gas resources in China and providing natural gas, liquefied natural gas (LNG) and quality oil products to help meet the country’s energy needs with cleaner fuels;
  • Research and development (R&D) and technology cooperation;
  • Taking Chinese enterprises overseas: leveraging China capability and growing business together.

We are proud that today:

  • Since BG acquisition in 2016, Shell further enhances its leading position in LNG supply to China.
  • Shell’s Changbei project is “a flagship Sino-foreign cooperative project in Upstream development”, supplying cleaner natural gas to Beijing, Tianjin, Shandong and Hebei Provinces. Changbei Project produced 3 billion cubic meters of natural gas in 2008, contributing a green 2008 Beijing Olympics. The production reached 3.3 billion in 2009 and continued for 12 consecutive years. This annual production of Changbei amounts 17% of the natural gas supply of Beijing in 2019.
  • the world-class CSPC (CNOOC and Shell Petrochemicals Company Limited ) is one of the largest sino-foreign petrochemical joint ventures in China.
  • Shell Energy China (SEC) is one of the first wholly owned foreign entities to participate in the China’s carbon emissions market, and is one of the first foreign entities that have registered to trade in the China’s power market.
  • Shell Lubricants has been the global market leader for 15 consecutive years
  • Shell has the leading network of retail sites among IOCs in China;
  • Shell has a deep and growing partnership with Chinese national oil companies outside of China;
  • Shell China had honorned Poverty Alleviation Ambassador Award by CFPA

Integrated Gas & New Energy

Changbei Central Processing Plant
Integrated Gas, Renewableas & Energy Solutions

Tight gas exploration and production

Changbei Project is Shell's first onshore upstream cooperation project in China. The project is to explore and produce tight gas in Changbei area.

Changbei area is located within Shaaxi Yulin and Inner Mongolia Ordos and covers an area of 1692.5 km2. In 1999, Shell and China National Petroleum Corporation (CNPC) signed Production Sharing Contract to co-develop Changbei Tight Gas Field and to supply natural gas to Beijing, Tianjin, Shandong and Hebei Provinces. Changbei Project was put into commercial operation in March 2007 ahead of time and produced 3 billion cubic meters of natural gas in 2008, contributing a green 2008 Beijing Olympics. The production reached 3.3 billion in 2009 and continued for 12 consecutive years. This annual production amounts 17% of the natural gas supply of Beijing in 2019.

LNG supply :

Shell is one of the leading international energy companies in supplying LNG to China. Since BG acquisition in 2016, Shell further enhances its leading position in LNG supply to China. As a leading LNG suplier in China and globally, Shell supplies LNG to local partners under long-term contract as well as short-term sales, and aspires to provide stable and competitive natural gas supply to end-users in China via it’s domestic LNG/natural gas trading and supply business.

Shell Energy China (SEC) :

Shell Energy China (SEC) is one of the first wholly owned foreign entities to participate in the China’s carbon emissions market, and is one of the first foreign entities that have registered to trade in the China’s power market.

Renewableas & Energy Solutions:

Shell Renewableas & Energy Solutions Business started in 2016 and is one of the significant steps to realise our zero-carbon emission and energy transition ambition. Focusing on power and new fuels, Shell New Energy has established business footprints across the world.

Downstream

Downstream business

Oil Lubricants - Shell Lubricants has been the global market leader for 15 consecutive years*. Shell produce, market and sell technically advanced lubricants to serve drivers, industries and OEMs. We has 5 lubricant blending plants and 1 grease plant in China, which are an essential part to meet Chinese customer demands. Shell has launched a new Pureplus technology to make natural gas into crystal pure fully synthetic base oil. Combined with Shell's unique intelligent self-repair technology, it has created lubricating oil products with super clean, ultra-low friction and excellent protection performance.

Spending around $100 million a year in R&D, we have a world-leading innovation programme which includes a global technology center in Shanghai. With advanced technology and commitment to meet the increasing demand of Asian customers, we continuously develop and make breakthroughs in products and technologies of passenger car lubricants, heavy engine oils, transmission fluids, special lubricants and greases.

Shell has many partners around the world. For example, for more than 60 years, shell has been working with F1 Ferrari to develop high-performance fuels and lubricants. With these legendary technical cooperation, Shell has brought high-quality fuel and lubricants to Chinese users to help keep car engines clean and improve fuel efficiency.

*Kline & Company’s 18th Edition Global Lubricants: Market Analysis and Assessment 2020 report

Shell station

Retail - Shell is the world's largest oil retailer with 46,000 petrol stations in around 80 countries and regions. We are committed to making your journey better by providing a better mobility experience today and creating a more sustainable way of mobility in the future. Shell offers a wide range of energy services, including formula diesel, gasoline, electric vehicle charging, LNG, and hydrogenation, as well as convenience stores, car washes, oil changes and fast food. China is one of the most important growth markets for Shell's global Mobility business. We have more than 1,700 service stations in China and serve about 800,000 customers a day.

China is one of the top growth markets for Mobility business of Shell. In China, Shell operates a retail network of more than 1,700 service stations through joint ventures and wholly-owned companies, with around 1,000 electric vehicle charging positions.

Shell Select and Deli by Shell offer high-quality products to help customers recover on the go. Shell's unique one-stop, diversified automotive care products and services make your next journey safer and smoother. Shell makes mobility easier and smarter for its customers through industry-leading loyalty programs and technical solutions. No matter where you come from or where you're about to go, Shell is dedicated to make your life journey better with our world-class hardware and home-like service!

bitumen

Bitumen - With over 100 years’ experience, Shell Bitumen is the world’s leading supplier of bitumen. We supply enough bitumen to help resurface 500 km of road every day; that’s enough to travel around the world 4.5 times in one year.

Our wide range of innovative bitumen products is designed to help meet the challenges of road, roofing and airport sectors, alongside specialty and industrial applications.

shell chemicals

Chemicals - Shell Chemicals & Products is one of the world's leading chemical suppliers with a range of base, intermediate and performance chemicals used to make products that people use every day. We have more than 85 years of sales experience and assets around the world. We export more than 17 million tons of petrochemical products to large industrial customers each year on average.

The biggest chemical project of Shell in China is CSPC (CNOOC and Shell Petrochemicals Company Limited), located at Daya Bay of Guangdong Province, which is also one of the largest sino-foreign joint ventures in China.

Phase I started commercial operations in 2006 and Phase II (C2) started in 2018, including an ethylene cracker with 1,200 ktpa capacity and multiple downstream derivatives units. It also includes Shell’s OMEGA, SMPO and Polyols technologies.

CSPC increased its ethylene production capacity to 2,200 ktpa after C2’s start-up, and it can supply more than 6 million tonnes of high-quality products to the domestic market every year, becoming the biggest single-site ethylene plant operating in China.

In May 2020, CNOOC, Shell and the Huizhou Government signed a strategic cooperation agreement to invest on CSPC Huizhou Phase III expansion. This would involves building a third ethylene cracker with 1,500 ktpa and deploying the Shell Group’s advanced technology for linear alpha olefins for the first time in Asia.

Projects & Technology

SC&T

SC&T is a new brand established in April 2018, based on Shell's full range of catalyst, technology licensing and technical services businesses, and based on industry and market development needs. SC&T aims to provide more comprehensive, integrated and convenient quality products and technical services solutions to energy and petrochemical customers.

In refining, we design and retrofit refineries and process units. In the petrochemical sector, we provide the necessary catalyst and protective bed solutions; In upstream and natural gas production, we have been helping reduce sulfur dioxide emissions and air pollution in China's heavy industry sector for more than a decade by focusing on the removal of pollutants from natural gas and environmentally harmful gases from downstream process units.

Trading

China is one of shell's main procurement outsourcing countries. Shell leverage the refining, supply and distribution strengths of China's petrochemical industry to enhance its value chain, and our procurement in China exceeds $1.4 billion annually. Chinese suppliers gain international credibility by providing products and services to Shell. So far, more than 530 Chinese suppliers have been shortlisted in Shell's global qualified suppliers list.

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