Key chemical projects
Royal Dutch Shell (RDS.A) is focusing on its downstream segment, a growth priority. The company believes population growth and higher standards of living will drive demand for petrochemical products.
In the chemical segment, the company expanded its alpha olefins capacity to 1.3 million tons in Geismar, which should help it serve the growing demand for linear alpha olefins. The site, the largest of its type in the world, is well positioned with proximity to local markets, access to advantaged feedstocks, and integration with the company’s US Gulf Coast assets. Shell’s announcement of the startup of its new ethylene cracker in Nanhai, China, has also strengthened its foothold in the chemical segment.
Further, Shell is constructing a significant petrochemical complex in Pennsylvania to process ethane from shale gas. The site is set to produce 1.6 million tonnes of polyethylene per year beginning in 2020.
Shell’s oil product projects
Shell’s refining projects saw progress last year, with its Pernis solvent de-asphalting project in Rotterdam starting production. The project is set to increase the company’s production of higher-value refined products. Shell also completed the modernization of its Scotford refinery to improve feedstock flexibility, produce high-value products, and expand margins. Shell is focused on integrating its value chain, of which the downstream segment forms a vital component.