Two officials from China’s top refiner Sinopec Corp told Reuters that the group has started planning to build a $10-billion refinery and petrochemical complex in Caojing chemical industrial park in southern Shanghai.
The plan, initially approved by China’s economic regulator last month, consists of a 400,000 barrels-per-day refinery and a 1 million tonnes-per-year ethylene project, according to the Sinopec officials who declined to be named.
The new refining plant is designed to process mostly imported crude oil, with the capacity to receive 300,000-tonne crude carriers, Reuters said.
Sinopec reached an agreement with the Shanghai authorities in 2011 to invest more than 60 billion yuan ($9.84 billion) to build a refining and petrochemical project in Caojing chemical industrial park so that some refining facilities in its Gaoqiao subsidiary in Pudong area could be shifted to the southern suburb in a bid to curb pollution.
The Gaoqiao refining plant has seen several blasts in the last few years, posing safety and environmental risks on Pudong’s residential areas.
The company has enacted environmental assessment for the new plant and expects to get final approval from economic regulator by June 2015, the Gaoqiao subsidiary said.