Kuwait and China plan to build $9bn refinery on Donghai Island

11 August 2009
Kuwait Petroleum International (KPI) and Chinese state refiner Sinopec have decided on a new location for their $9bn refinery in China.

The two firms will build the refinery on Donghai Island near Zhanjiang in China's Guangdong province, according to a KPI statement issued on 10 August.

The joint venture partners originally planned to build the 300,000-barrel-a-day (b/d) refinery in the Nansha district of the neighbouring Guangzhou province.

However, they changed the location after provincial leaders voiced concerns over the environmental impact on the local population.

KPI and Sinopec are now waiting for China's National Development & Reform Commission to approve the new location of the plant.

The firms will start financial and environmental feasibility studies this week, according to KPI.

The plant is set to be completed in 2015. It is part of Kuwait's plans to build strong links with China, regarded as a key future market for oil and gas.

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