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Zhejiang Petrochemical started construction on Monday of the first phase of its oil refining and petrochemical complex on the island of Zhoushan, near Shanghai, in Zhejiang province, the official Xinhua news agency reported.
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Xinhua did not give an expected start-up date for the project. Reuters reported last year that the project was likely to be operational by 2020. Zhejiang Petrochemical's project will consist of two 400,000 barrels-per-day oil refineries and two 1.4 million tonnes-a-year ethylene plants, according to an environmental evaluation paper from the Zhejiang provincial government dated May 3. The project is part of Beijing's efforts to bring private investors into the country's state-controlled energy sector. It has also raised concerns of a growing domestic glut in oil products, especially in eastern China where diesel and gasoline demand eased. Textile maker Rongsheng Holding Group, petrochemical maker Juhua Group and Tongkun Group, are the main financiers of the 173 billion yuan ($25.44 billion) project, the environmental document showed. The investors will borrow more than 120 billion yuan in bank loans to finance the project, the document said. ($1 = 6.8013 Chinese yuan renminbi) By Reuters l Reporting by Meng Meng and Beijing Monitoring Desk l Editing by Christian Schmollinger |
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