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Location of oil complex in China not decided yet: Shell China

(Xinhua)
Updated: 2009-08-07 17:19

The location of a planned refining and chemical complex, a joint project between PetroChina, Shell China Exploration and Production Ltd (Shell China) and Qatar Petroleum (QP) has not been decided yet, Li Lusha, spokesperson of Shell China told Xinhua Friday.

Li made the comment in response to media reports saying the complex would be built in Taizhou of East China's Zhejiang province.

"We are still evaluating the project's feasibility and will release any further information about it soon," Li said.

PetroChina has submitted the project plan to the National Development and Reform Commission for approval but had not received any reply, Caijing, a leading financial magazine in China, reported Wednesday, citing Zhang Qingyuan, deputy director of program planning division of refining and chemical branch of PetroChina.

The three parties signed the investment agreement in Doha, capital of Qatar, in June 2008.

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Under the agreement, PetroChina would hold 51 percent of the complex's total stake, while Shell China and QP would get 24.5 percent each.

The planned investment on the project was 80 billion yuan ($11.71 billion), and the complex would include an oil refinery with capacity of 20 million tons annually, an ethylene unit of 1.2 million tons per year and a 300,000-DWT crude oil wharf, the China Chemical Industry News reported Tuesday.

Shell's Li, however, did not confirm the size of the project or planned investment.