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Shell Hopes To Finish Feasibility Study For China Refinery In 09

THE WALL STREET JOURNAL

MARCH 28, 2009, 1:35 P.M. ET

BEIJING (Dow Jones)–Royal Dutch Shell PLC (RDSB.LN) hopes to finish the feasibility study of a joint venture refinery and petrochemical complex with PetroChina Co. (PTR) and the international arm of Qatar Petroleum by the end of this year, a Shell executive told Dow Jones Newswires Saturday.

The location of the refinery and petrochemical-manufacturing complex will be in a coastal area of China, said Lim Haw-Kuang, the executive chairman of Shell Companies in China, without disclosing a specific place.

A pre-feasibility study for the project is being carried out and the next step will be doing the formal feasibility study. Meanwhile, an environmental-impact assessment is under way.

The study will be submitted to the National Development and Reform Commission, China’s economic planning agency, for approval.

The three companies signed a letter of intent in June last year to build a refinery and petrochemical-manufacturing complex and marketing its products in China.

The capital expenditure for this project will hit $4.1 billion and the refining capacity will exceed 10 million tons per year, according to an earlier report from China Business News.

Shell and Qatar Petroleum International will each have 24.5% stakes in the refinery and petrochemical facility, with PetroChina having majority control of a 51% interest.

Wan Xu contributed to this story, Dow Jones Newswires; 8610-65885848; [email protected]

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