The refinery will be built near the Group's Nanhai petrochemical project which is currently under construction.
The answer from the Guangdong government - on whether or not Shell will be given permission to go-ahead with the investment - is expected within six months. However, China's CNOOC and Shell Petrochemicals Co Ltd have already begun feasibility studies on the area.
The refinery is expected to supply raw material to near-by oil-cracking factories and - according to a CNOOC Shell official - the complex is expected to generate up to US$150 million in revenue for the Nanhai petrochemical project.