Shell has focused its businesses on base chemicals, intermediates and solvents. In particular, PO and polyols have become the company's core products. As a major polyols and PO manufacturer second only to Dow, Shell is a big player dominating the European and Asian polyols and PO markets.
Currently, the Company has six SM/PO units, of which two are located in Moerdijk, the Netherlands, two are in Singapore (including the one owned by Ellba Eastern, a joint venture between Shell and BASF), and two in Huizhou City, Guangdong province, China. Its third-generation PO technology reduces the production costs for PO by 60%, improves the reliability of the manufacturing facilities, and reduces water consumption and wastewater discharge. The technology has been adopted by CNOOC and Shell Petrochemicals Company’s 630kt/300kt/a SM/PO project, which along with the PPG project was put into operation in 2021.
Today, let's review the history of Ellba Easter, which has gone through the stages of joint venture, exit and shutdown starting from 2002.
Joint venture
In 2002, BASF and Shell jointly invested $500 million to establish the 50:50 joint venture Ellba Eastern. Operated by Shell, Ellba Eastern has a 550kt/250kt/a SM/PO facility that adopts Shell's proprietary SM/PO technology.
Exit
In 2014, BASF announced that it had reached an agreement with Shell to sell its stake in the joint venture to Shell. As part of the agreement, BASF also signed a supply contract with Shell to ensure continued PO supply from the latter.
Shutdown
According to sources, the SM/PO plant has been shut due to technical issues. And it is unclear how long the suspension will last.
Like Ellba Eastern, Ellba, a joint venture between Shell and BASF but located in Moerdijk, the Netherlands, is operated by Shell. The plant exploded and caught fire on June 3, 2014. Before the accident, it had a production capacity of 550,000 tonnes/year for styrene monomer and 250,000 tonnes/year for PO. Unaffected by the accident, the plant was rebuilt as originally designed.
