The plan to build a USD13 billion refinery and petrochemical complex located in east China has stalled because of the inability to find a suitable site for the complex. This drawback could result in long-term delays according to government and industry officials.
The project is done in partnership with the Royal Dutch Shell and Qatar Petroleum. It is currently facing great competition from petrochemical firms utilizing US gas as its feedstock. This is a change of strategy from PetroChina and had been opposed by locals.
According to an industry official with direct knowledge of the project, "The Taizhou project is on hold." The official pointed out the need for a massive landfill project. The site required needs to be strong enough to carry the massive plant without any issues. Even after two years of research and land survey, there has been no decision as to the final site for the project.
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