Sinopec, KPC pick Zhanjiang for refining, chemical complex

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, Aug. 11 -- China Petroleum & Chemical Corp. (Sinopec) said its joint refining and chemical complex with Kuwait Petroleum Corp (KPC) is to be constructed on Donghai Island in Zhanjing city, near Hainan.

"From this week, the two sides will start feasibility studies for the new site and an evaluation report on environmental impact," said Sinopec, adding that the new site was chosen after several months of screening by Sinopec and KPC as well as Chinese and international consultants.

Sinopec said the $9 billion complex, which will have an annual capacity of 15 million tonnes, is due for completion by yearend 2013 after it gains approval from the country’s National Development and Reform Commission.

The two firms originally chose the Nansha District of Guangdong's capital city Guangzhou as the location for the complex, but local media said they changed plans due to environmental concerns.

Hong Kong’s RTHK Radio 3 said Sinopec and KPC agreed to move the refinery project on the mainland further away from Hong Kong after “strong opposition from local green groups and lawmakers.”

In May, the Kuwait News Agency reported that the refinery project, which also includes a 1 million tonne/year ethylene cracker unit, will be designed to solely process Kuwaiti crude supplied by KPC.

Contact Eric Watkins at [email protected].