Eric Watkins
OGJ Oil Diplomacy Editor
LOS ANGELES, Aug. 10 – Shell China Exploration and Production Ltd. (Shell China), aiming to correct earlier media reports, said no location has been decided yet for a planned refining and chemical complex, a joint project between itself, PetroChina, and Qatar Petroleum (QP).
"We are still evaluating the project's feasibility and will release any further information about it soon," said Shell China spokesperson Li Lusha in response to earlier reports by Chinese state media.
On Aug 5, China Chemical Industry News reported that Shell China and its partners planned to build an 80 billion yuan ($12 billion) refining and chemical complex in Taizhou, Zhejiang province.
Shell's Lu did not comment on the size of the project or planned investment as reported by CCIN, which said the complex is to include a 20 million ton per annum (tpa) oil refinery, a 1.2 million tpa ethylene unit, and a 300,000-DWT crude oil wharf.
The parties forwarded the project plan to the National Development and Reform Commission for approval, said CCIN.
Analysts commenting on the report said the move would intensify rivalry with China Petroleum & Chemical Corp (Sinopec) in the fast-growing eastern China market.
In June 2008, the three firms signed the investment agreement under which PetroChina is to hold 51% interest, while Shell China and QP would hold 24.5% each.
Contact Eric Watkins at [email protected].
Photo from ExxonMobil Corp.
Photo from Esso SAF.
