The Nanhai Petrochemical Project is currently the largest Sino-foreign joint venture project for the petrochemical industry in China. The project was approved by the Chinese government in February 1998. Construction is due to start in 2002 and completion is scheduled for 2005.

Total investment in the project will amount to US$ 4.5 billion, making this the single largest foreign investment project in China's petrochemicals industry. The four partners in the project are: Shell Nanhai Ltd with 50%, China National Offshore Oil Corporation (CNOOC) with 40%, Guangdong Investment & Development Company with 5% and China Merchants Holdings Company Limited with 5%. CNOOC is the lead partner on behalf of the Chinese companies in all negotiations with Shell.

The site for this major world scale petrochemical complex is at Daya Bay, Huizhou, within China's southern Guangdong Province. At the heart of the complex will be an 800,000 tonne per annum (tpa) ethylene cracker. Other major features of the complex are: a 560,000 tpa styrene monomer and 250,000 tpa propylene oxide plant, a 320,000 tpa mono-ethylene glycol plant, a 240,000 tpa polypropylene plant, a linear low density polyethylene/high density polyethylene plant of 300,000 tpa, and a low density polyethylene plant of 150,000 tpa, plus integrated support facilities and utilities. The whole complex has been designed to meet high environmental standards.

The plant is designed to produce 2.3 million tpa of polyethylene, polypropylene and other chemical products for the domestic market and export.