Sinopec, KPC plan to begin a feasibility study for the new location this week and will write up a report on environmental protection issues, said Sinopec Group.
In 2006, the companies secured an approval from the National Development and Reform Commission to establish a refinery in Guangdong region. The refinery, which was initially expected to cost $5 billion, was expected to have a crude oil processing capacity of 12 million tons per year. It was planned to be constructed in Nansha, but was blocked due to environmental concerns.
On August 10, 2009, Sinopec has entered into agreements with China Shipping (Group) Co, Sinotrans Group, China Ocean Shipping (Group) Co and China Merchant Group to receive transportation services on a long-term basis.
