Shell's China refinery project shelved, says report
BEIJING (REUTERS) - A US$13 billion (S$16 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 last year.
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.