Construction schedules of refining projects in the Bohai Ring region may be delayed as the central government focuses more on the environment in this region, according to refinery sources.
"Environmental evaluation may take more time, because a more detailed and environment-friendly design is required,” said an official participating in the assessment of Sinopec’s 10-mil-mt/yr Caofeidian project in Hebei Province.
A source with Sinopec's refinery in South China said "the construction progress of a refining project may be affected, if the project is redesigned or improved to meet higher environmental protection requirements".
The source also said a stricter government control on the environment is unlikely to abandon or shelve the existing refining projects with capacity above 10-mil mt per year, because these projects are of relatively high standards in both techniques and environment protection design.
A source with Sino-Russia Oriental Petrochemical in Tianjin city declined to give comments on the influence of stricter government control, but said "construction commencement date depends on when to get approval from the government".
The 13-mil-mt/yr Sino-Russia Oriental Petrochemical is expected to start construction in the first half of 2012, with completion due in three years, according to an official with the Tianjin Municipal Development and Reform Commission.
Sino-Russia Oriental Petrochemical passed the environmental impact assessment of reclamation and the application for the use of sea areas in May 2011, said a source with the refinery.
The combined capacity of the Caofeidian and Tianjin projects accounts for 15% of the total capacity of China’s new refining projects in the next five years, C1’s record showed.
In addition, PetroChina is expected to build a 10-mil-mt/yr refining project in Dalian’s Changxing Island, where Shaanxi Yanchang Petroleum Group plans a 20-mil-mt/yr refinery.
Refining capacities of new projects in the coastal areas will take up 70-80% of the total during the Twelfth Five-Year Plan period (2011-2015); those to be located in the Bohai Ring region will account for 20%, indicated C1’s data.
The government will rigidly examine new refining projects in the Bohai Ring region and forbid the reclamation in the areas where ecological imbalance may worsen, primary minister Wen Jiabao said recently on the State Council executive meeting.
