Sept 11 An 8.3 billion pound ($13 billion)
project to build a refinery and petrochemical plant in eastern
China involving Royal Dutch Shell has been shelved
after losing political support, the Telegraph newspaper
reported, citing sources.
The plant in the eastern city of Taizhou -- a tie-up with
Chinese state-backed oil firm China National Petroleum Corp
(CNPC) and Gulf energy giant Qatar Petroleum -- would have
refined 20 million tonnes of crude and produced 1.2 million
tonnes of ethylene a year. Construction had been due to start
The newspaper said the project appeared to have fallen
victim to local opposition and politics.
It quoted a senior petrochemical executive as saying the
Chinese had confirmed the project had been cancelled, possibly
due to land problems.
A second source told the newspaper the project would be
permanently suspended. ()
A Shell spokesman told the Telegraph that the company was
still conducting a feasibility study into the project. Shell and
CNPC could not be reached for comment.
A high-level Chinese government probe into corruption at
CNPC widened at the end of August, with three additional senior
officials at the energy giant being investigated over alleged