(Reuters) - An 8.3 billion pound ($13 billion) project to build a refinery and petrochemical plant in eastern China involving Royal Dutch Shell
The plant in the eastern city of Taizhou -- a tie-up with Chinese state-backed oil firm China National Petroleum Corp (CNPC) and Gulf energy giant Qatar Petroleum -- would have refined 20 million tons of crude and produced 1.2 million tons of ethylene a year. Construction had been due to start last year.
The newspaper said the project appeared to have fallen victim to local opposition and politics.
It quoted a senior petrochemical executive as saying the Chinese had confirmed the project had been cancelled, possibly due to land problems.
A second source told the newspaper the project would be permanently suspended. (http://link.reuters.com/duj92v)
A Shell spokesman told the Telegraph that the company was still conducting a feasibility study into the project. Shell and CNPC could not be reached for comment.
A high-level Chinese government probe into corruption at CNPC widened at the end of August, with three additional senior officials at the energy giant being investigated over alleged wrongdoing.
($1 = 0.6361 British pounds)
(Reporting by Richa Naidu in Bangalore; Editing by Richard Pullin)
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