The global major is boosting its downstream operations with a new, 400-strong hub
Shell celebrate new plant opening Image: Shell |
The Anglo-Dutch oil major, which is headquartered in Beijing, hopes the new commercial centre will better serve its downstream business customers in the region with lubricants, marine products, bitumen, sulphur and chemicals solutions.
The Shanghai hub will improve logistics and distribution channels for Shell's sulphur products in China, which have generated solid revenues for the company in the region.
Despite falling oil prices and concerns over the firm's $70bn acquisition of BG Group, executive VP of Shell Global Commercial Mark Gainsborough has reinforced the company's commitment to the Chinese market, which accounted for some 46% of lubricants demand in the Asia Pacific region last year.
Alongside the commercial centre, Shell has launched its eighth blending centre in the region in Tianjin. The new plant can produce as much as 330m litres of lubricants each year and could also be upgraded to a 500m facility, which would make it Shell's largest in China.
Shell's new plant will produce a full range of engine oils, including Shell Helix for passenger cars and Shell Rimula for HDDOs. The Tianjin facility also operates with the Group's gas-to-liquid supply chain that enables to offer Shell Helix Ultra and PurePlus technology to Chinese consumers.
Meanwhile, Shell also announced that Huibert Vigeveno, executive chairman of Shell Companies in China, will move to the UK to spearhead the integration of BG Group into the firm. Zhang Xinsheng will replace him as executive chairman on July 1st.
Shell's primary focus in China is on working closely with key domestic players like CNOOC to develop upstream and downstream production on natural gas products. It has also been closening ties with government bodies like the National Development and Reform Commission, China's top economic planner.
While natural gas products account for less than 5% of China's national energy supply, Shell predicts this will rise to 8% by the end of the decade.