China Grants Approval for Mega Petchem Complex in Shandong Province
China accords initial approval for the revival of $20 Billion Mega Petchem Complex in Shandong oil hub. The greenlight to start the construction activities was given on Monday by China’s state planner, the National Development and Reform Commission (NDRC). This Mega Petchem Complex comprises Ethylene plant with an installed capacity of 3 million ton per year in addition to a massive 400000 barrel per day refinery. The project was proposed several years ago but its approval was delayed over concerns of incurring further loss to China’s petrochemical industry due to excessive refining capacity. However, it recently gained hopes of revival when Beijing proposed infrastructure spending to heel the economic struggle of China, after the Coronavirus Pandemic. According to industry Analysts, the project is anticipated to get completed by 2024, which is being regarded as a good year for rebounding of Petrochemical industry. On one hand this project is anticipated to assist China’s petrochemical positively industry by cutting imports, but it could also backfire by adding to the excess refining capacity in times of slumped demand.