Sinopec, Kuwait pick China’s Zhanjiang for refinery

BEIJING - China’s Sinopec Group said on Monday its planned $9 billion refinery with OPEC member Kuwait would be built in Zhanjiang city in the southern province of Guangdong, months after Beijing’s order to resite the plant on environmental concerns.

By (Reuters)

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Published: Mon 10 Aug 2009, 6:49 PM

Last updated: Thu 2 Apr 2015, 3:44 AM

The project will be completed in 2013, and the partners hoped to win Beijing’s final approval within months, Sinopec said in a statement.

“From this week, the two sides will start feasibility studies for the new site and an evaluation report on enviromental impact,” said Sinopec, parent of top Asian refiner Sinopec Corp 0386.HK>.

The project, a 300,000 barrels-per-day refinery and one million tonne-per-year ethylene complex that produces plastics and chemical fibre, first picked Nansha, in the provincial capital Guangdzhou at the heart of densely populated Pearl River Delta.

But the companies were forced to relocate the plant around May after strong opposition from environmentalists and residents as well as neighbouring Hong Kong and Macao over potential damages to the state protected wetland where Nansha is located.

Two industry officials said the final pick of Donghai Island of Zhanjiang city, in the less economically developed western part of Guangdong, China’s export hub, followed a close call with another competing site, Maoming, which was favoured by Sinopec.

“Sinopec has long wanted it to happen in Maoming, but I believe the Guangdong government wants it in Zhanjiang,” said one official familiar with the development.

Sinopec Corp already runs a major refinery of 270,000 barrels per day in Maoming city and had hoped to expand it further, utilising existing terminal facilities and utilities.

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