Shell Global Solutions, the technology arm of Royal Dutch Shell plc, and CRI/Criterion Marketing Asia Pacific Pte Ltd are stepping up efforts to offer collaborative licensing technologies and catalysts to Chinese petrochemical companies.

Shell Global Solutions will provide ethylene oxide and ethylene glycol (EO/EG) licensing technologies and tailored consultancy services and CRI will offer catalysts to produce EO/EG to achieve cost savings, according to Ken C. Lai, Shell Global Solutions's Asia Pacific director of licensing.

"The domestic demand for EO/EG has increased fast thanks to fast growth in the country's economy, and there will be a big business opportunity," Lai said at a press conference in Beijing Tuesday.

"There are different types of petrochemicals and petrochemical end products. Most petrochemical products are for industrial use and some are for consumer markets. EG is one of the vital ingredients for polyester fibers and film, polyethylene terephthalate resins and engine coolants – all of which are highly in demand," explained Lai.

Chang Yizhi, an industry analyst with the CIC Industry Research Center, said that the domestic EO/EG supply is not adequate to meet the demand and that the EO/EG industry will have a bright future if production costs can be controlled.

Domestic EO consumption will reach 6.8 million tons by 2012, while domestic production capacity is currently only 4.7 million tons, according to a report by Zhejiang-based brokerage firm Zheshang Securities.

"CRI catalysts can help achieve cost savings of $10 million each year for typical medium-sized 300 kilo ton /annum EO plants in China," Lai said.

Ma King Way, business director of CRI/Criterion Marketing Asia Pacific, predicted that domestic demand for catalysts used in producing EO/EG would double from the current 2,000 tons to 4,000 tons within six years.