Shell to push for refinery deals in China

Royal Dutch Shell is pushing for an oil refinery deal in China despite setbacks, because it is vital to the company’s long-term success in a key market, according to Shell Group Executive Director Downstream Rob Routs. Routs said the company was still in talks with Kuwait Petroleum Corp. (KPC) on a US$5 billion plant in Guangdong despite reports that the Kuwaiti firm wanted to drop Shell as a partner. It is also exploring other projects. Shell ended talks last year with China National Offshore Oil Corp (CNOOC) on a US$2.5 billion refinery in southern China. Meanwhile, the company’s largest China project, an 800,000 ton-per-year naphtha cracker, is performing well and should meet or surpass its nameplate capacity this year and next. (October 29, 2007)