MOSCOW (MRC) -- Top Asian refiner Sinopec Corp won initial approval last month from China's top economic planner for a plan to build a USD10-billion refinery and petrochemical complex in Shanghai, reported Reuters with reference to two company officials' statement.
China, the world's largest net importer of oil, is likely to add 3 million barrels per day, or a quarter of new refining capacity, between 2013 and 2015 to fuel economic growth, industry officials and Chinese media estimate.
Sinopec has started formal planning for the 400,000 barrels-per-day refinery and a 1 million tonnes-per-year ethylene project in a plan to curb pollution by shifting an old plant to Shanghai's southern edge, the officials told Reuters this week.
The new Sinopec plant, designed to process mostly imported crude oil, will be built in the Caojing industrial park, some 50 km from the centre of Shanghai.
"The initial approval allows us to start planning work," said a company official, adding that Sinopec had agreed with Shanghai authorities in 2011 to shift some of the facilities at its Gaoqiao refinery to the new site once it was ready.
The plan for Sinopec's Shanghai refinery includes a new crude oil terminal with the capacity to receive a 300,000-tonne very large crude carrier.
The whole refinery and petrochemical project could cost more than 60 billion yuan (USD9.84 billion), domestic media have said.
Near the site of the new plant, Sinopec operates a similar complex, Shanghai Petrochemical Corp, with a 320,000-bpd refinery and an 850,000-tpy ethylene plant.
As MRC informed previously, in late 2012, Sibur, a Russian gas processing and petrochemicals company, and Sinopec International (Hong Kong) Co. Ltd, the wholly owned subsidiary of Sinopec, signed an agreement that will see Sinopec purchase 25% + 1 share of Krasnoyarsk Synthetic Rubbers Plant JSC (KSRP). Sibur and Sinopec are also discussing projects on setting up a joint venture to produce nitrile and polyisoprene rubbers in Shanghai.
Sinopec Corp. is one of the largest scale integrated energy and chemical companies with upstream, midstream and downstream operations. Its refining and ethylene capacity ranks No.2 and No.4 globally. The Company has 30,000 sales and distribution networks of oil products and chemical products, its service stations are now ranked third largest in the world.
MRC