Sinopec's US$3.1 bln ethylene plant at Qingdao on hold

29-Apr-14

Sinopec Corp has held up a US$3.1 bln ethylene plant in east China's Qingdao, after a fatal pipeline blast that occured in November 2013 raised doubts on the environmental viability of the petrochemical complex, as per a company source in Reuters. The explosion killed 62 persons. The delay on the project also comes amid concern about demand growth in China's petrochemical sector and new competition from U.S. shale gas crackers. The ethylene plant was to be its first designed to use natural gas and LPG as a feedstock.