Oil Corp. (CNOOC) has started constructing a CNY 8.3 billion fine chemical project in Dongfang city industrial park, Hainan Province. The project will be constructed in two phases. The first-phase project, to start operation in December 2012 with CNY 4.341 bln investment, will produce liquefied natural gas, MTBE, naphtha and diesel. The second-phase project will produce acrylonitrile, styrene, MMA and acetonitrile and is estimated to start operation in April 2013. The fine chemical project is a key project of Hainan's 11th five-year plan to count on the abundant offshore oil resources in Hainan. It will adopt deep catalytic cracking technology according to the nation's clean production and green chemical development principles.