Recently, the bidding announcement for the General Construction Contract [Construction] of the Superstructure Installation Project for the Expansion of the CNOOC-Shell Petrochemicals Company (CSPC) Nanhai Petrochemical Chemical Terminal (Phase III) at the Donglian Operation Area, Dongma Port Area, Huizhou Port was released. Project Scale: The project involves the construction of two new 50,000-ton liquid bulk cargo berths (No. 6 and No. 7) and corresponding ancillary facilities. The two berths share a total shoreline length of 696 meters, with a newly built terminal's comprehensive design throughput capacity of 4.4 million tons per year. This project serves as a supporting public utility system for the newly constructed 1.6 million tons/year ethylene plant and downstream chemical facilities (i.e., the CNOOC-Shell Huizhou Phase III Ethylene Project). Bidding Scope: Includes but is not limited to the procurement, construction, commissioning, startup, and performance testing of terminal structures and buildings (i.e., all construction work for the terminal fire control building, interior and exterior decoration (including doors and windows) of the work building and fire pump house, and installation of internal equipment and facilities), steel structure pipe rack supports, foundations for pipe rack supports on the existing CSPC terminal and approach bridge, water supply and drainage, fire protection, equipment, storage and transportation, process and utility pipelines, anti-corrosion, insulation, fireproofing, anti-seepage, cold insulation, thermal engineering, ventilation, electrical, telecommunications, instrumentation and control, fire alarm, CCTV monitoring, lightning protection grounding and static electricity grounding, fire protection, and tracing systems, as well as third-party non-destructive testing for the installation works. Planned Commencement Date: March 21, 2026; Planned Completion Date: June 30, 2027.

Recently, it was learned from the Huizhou Daya Bay Economic and Technological Development Zone that the CNOOC-Shell Huizhou Phase III Ethylene Project is accelerating its construction, with a cumulative completion of 42.49% of the overall progress to date. Currently, the CNOOC-Shell Huizhou Phase III Ethylene Project is under vigorous construction. The project held its comprehensive construction commencement ceremony on January 15, 2025, marking its entry into the main construction phase. Centered around a 1.6 million tons/year ethylene cracking unit, the project involves the construction of 18 chemical plants, along with public utilities and supporting facilities. Upon completion, the project will yield significant economies of scale, increasing ethylene production capacity to 3.8 million tons/year, allowing CNOOC-Shell to maintain its "crown" as the largest single-site ethylene producer in China. Furthermore, the products from this project will help meet the Greater Bay Area's market demand for high-performance new chemical materials and high-end chemical products. The project introduces several process technologies applied for the first time in Asia and domestically, with seven units utilizing Shell's proprietary technologies. It will supply over 5 million tons of chemical products annually to the market, including metallocene polyethylene, polypropylene, styrene, polyether polyols, ethylene glycol, α-olefins, synthetic alcohols, and poly-α-olefins, effectively filling the domestic market gap for high-end chemical products and promoting China's petrochemical industry toward the high end of the global value chain. Meanwhile, through measures such as optimizing the project scope and electrifying large compressor units, the Phase III project will achieve an overall 20% reduction in CO₂ emissions, promote the utilization of renewable green energy electricity, and support the implementation of the national "dual carbon" strategy. The construction scope includes ethylene and 16 downstream chemical plants, comprising:

• 1.6 million tons/year ethylene cracking unit
• 305,000 tons/year butadiene extraction unit
• 1.46 million tons/year pyrolysis gasoline hydrogenation unit
• 1.1 million tons/year aromatics extraction unit
• 645,000 tons/year ethylene oxide-ethylene glycol (EO-EG) unit (including a 190,000 tons/year high-purity ethylene oxide unit)
• 600,000 tons/year metallocene linear low-density polyethylene (mLLDPE) unit
• 500,000 tons/year polypropylene (PP) unit
• 400,000 tons/year linear α-olefins (LAO) unit
• 130,000 tons/year isomerization and disproportionation (ID) unit
• 130,000 tons/year Shell Higher Olefins Process (SHF) unit
• 50,000 tons/year poly-α-olefins (PAO) unit
• 1 million tons/year ethylbenzene (EB) unit
• 875,000/400,000 tons/year styrene-propylene oxide (SM-PO) unit
• 450,000 tons/year polyether polyols (DMC-POD) unit
• 100,000 tons/year polymer polyols (POP-POD) unit
• 270,000/80,000 tons/year MTBE/butene-1 unit