GUANGDONG environmental authorities have indicated they will not stand in the way of a controversial US$5 billion oil refinery and petrochemical plant in Guangzhou's Nansha despite opposition because of the potential pollution.

Chen Guangrong, deputy director of the provincial environmental watchdog, said Tuesday that the provincial authorities supported plans for the Sinopec-Kuwait Petroleum Corporation plant.

Chen said the plant would have "significant strategic meaning" in securing the province's energy supply and would fit in with Guangdong's industrial strategy. But he said the Ministry of Environmental Protection had to give the final approval for the plant, a project that would also have a "significant impact on Guangdong's environment".

"As far as I know, the plant has not yet obtained the environmental impact assessment approval from the national watchdog, and won't be allowed to start construction without it," Chen said.

Earlier media reports suggested that land requisition for the project had been under way in Nansha, a southern district of Guangzhou, since June.

The Southern Metropolis Daily suggested the project was proceeding against national regulations that all planned petrochemical projects must have an environmental impact assessment, as well as feedback from the public and experts.

The controversial plant was listed as a priority project in the province's annual economic and social development program in January but 14 Guangdong legislators have jointly urged the government to shelve the project because of environmental concerns.

Guangzhou Mayor Zhang Guangning said the government would reduce the plant's output of pollutants with advanced equipment that met international standards.

The Sinopec-Kuwait Petroleum plant is designed to be able to process 15 million tons of petroleum and 1 million tons of ethylene a year.

(SD-Agencies)