Shell to invest in Daya Gulf

Pending approval from the local Guangdong Province government, the Shell Group is looking to invest around US$2 billion to build an oil refinery at Daya Gulf, mainland China.

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.