Royal Dutch Shell shelves GBP 8.3 billion eastern China refinery- paper
The Telegraph reported that Royal Dutch Shell had dropped its proposed GBP 8.3 billion or USD 13 billion refinery project in Taizhou, Eastern China. The newspaper talked to sources who said the plan was shelved after it had lost political support. The proposed refining facility and petrochemical plant was in partnership with state-run China National Petroleum Corp.
Had the project pushed through, it would have produced 1.2 million tons of ethylene annually. It would also have refined 20 million tons of crude oil each year. Building was slated to begin in 2012.
According to The Telegraph, politics and local opposition were the reasons why the project had to be postponed. A senior executive said the Chinese had cancelled the project perhaps because of land problems. Another source also told The Telegraph that the project would be suspended permanently. However, a spokesman for Shell informed the newspaper that the company was still doing a feasibility study for the proposal.