Full publication: PDF (92 pages), XLS (95 tables) - Reports - Shell

36 Shell Investors’ Handbook
Downstream
CHEMICALS
We produce and sell petrochemicals to
some 1,100 major industrial customers
worldwide, with the top 20 customers
accounting for about 42% of our thirdparty
sales proceeds. Our range of
petrochemicals includes base chemicals,
such as ethylene, propylene and aromatics;
and first-line derivatives, such as styrene
monomer, propylene oxide, solvents,
detergent alcohols, and ethylene oxide.
Our customers, many of them leading
companies in their own fields, use these
products to make everyday items, such
as plastics, detergents, textiles, medical
equipment and computers. All in all, we
sold almost 19 million tonnes of bulk
petrochemicals in 2011.
We also produce additives for fuel and
lubricants, and catalysts for refinery and
petrochemical markets. Shell catalysts
have steadily improved the production of
ethylene oxide, an important building block
for synthetic fabrics, plastic bottles and
antifreeze. More efficient ethylene oxide
production has the benefit of lowering CO 2
emissions.
Shell petrochemical alcohols are the basis
of more concentrated household laundry
detergents that clean clothes at lower
temperatures. Compared with traditional
powders, they not only require less
detergent per wash but also have lower
packaging, shipping-weight and shelf
space requirements. Washing laundry at
colder temperatures can help consumers to
save energy.
Over many decades we have developed
the proprietary technologies, processes
and catalysts that enable Shell to enjoy
a powerful competitive advantage in our
core petrochemical markets. Our OMEGA
technology is considered the most efficient
technology currently available in the world
for converting ethylene to ethylene oxide,
which is used to make a wide range of
industrial and consumer products, such as
polyester films and fibres, engine coolants
and antifreeze. OMEGA uses about 20%
less steam and 30% less waste water
than a traditional thermal conversion
MEG plant with the same capacity. The
technology also produces significantly less
carbon dioxide per tonne of MEG than
conventional processes.
In Singapore, we are building a
demonstration unit to manufacture the
chemical ingredient diphenyl carbonate, a
versatile and growing engineering plastic
used in a wide variety of applications, from
optical media, household items, automotive
components to electronics and sheeting/film.
TOTAL CHEMICALS PRODUCT SALES [A]
million tonnes
25
20
15
10
5
0
2007 2008 2009 2010
Base chemicals
First-line derivatives and others
2011
[A] Excludes volumes sold by equity-accounted investments,
chemical feedstock trading and by-products.
We will continue to focus on the synergies
among our chemical plants, refineries and
Upstream businesses to increase the supply
of the best available feedstock for our
crackers.
Our Chemicals strategy is based on
selective growth at existing sites through
increases in capacity, improvements
in efficiency and integration, and
strengthening our feedstock sources.
It is also based on securing integrated
� MEG storage and facility at the Shell Eastern Petrochemicals Complex (SEPC), Singapore.