China Rejects Sinopec Environmental Assessment

The Chinese government has rejecting an environmental impact assessment for an $84 million commercial crude oil storage base planned by Sinopec Corp citing insufficient measures to cut potential pollution.

The proposed second phase of Baishawan commercial crude reserve base is in the eastern Zhejiang province.

"The selected site is relatively sensitive with relatively high hidden environmental risks," the Ministry of Environmental Protection said on its website (www.mep.gov.cn).

The public has expressed concerns about potential environmental risks posed by the project which have not yet been addressed, the government said.

The project, estimated to cost 513.3 million yuan ($83.6 million), includes one 150,000-cubic-metre tank and three 100,000-cubic-metre tanks, according to the assessment report.

Smog and environmental degradation in many parts of China is angering an increasingly educated and affluent urban class. Following a series of health scares and accidents there is deepening public scepticism of the safety of industries ranging from food to energy.

China, the world's largest crude oil buyer after the United States, is believed to have stepped up filling reserve tanks - both strategic and commercial - this year, as its crude oil imports exceeded refinery throughput.

Reporting by Judy Hua and Chen Aizhu