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TUESDAY, JANUARY 7, 1975
SHELL/DOW REFINERY AND PETROCHEMICAL PLANT STUDY
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THE GOVERNMENT HAS RECEIVED FROM THE SHELL COMPANY OF HONG KONG LTD. AND DOW CHEMICAL PACIFIC LTD. THE CONCLUSIONS DERIVED FROM THEIR JOINT FEASIBILITY STUDIES FOR A REFINERY AND PETROCHEMICAL COMPLEX IN HONG KONG.
THESE STUDIES INDICATE THAT, GIVEN THE RIGHT GLOBAL BUSINESS CONDITIONS, SUCH A COMPLEX IS BOTH ECONOMICALLY AND TECHNICALLY FEASIBLE AND BOTH SHELL AND DOW REMAIN INTERESTED IN DEVELOPING A PROJECT IN HONG KONG.
IN HOWEVER, THE GOVERNMENT IS ADVISED BY SHELL AND DOW THAT, VIEW OF THE PRESENT UNCERTAINTY REGARDING THE LONG TERM AVAILABILITY OF CRUDE OIL SUPPLIES, AND THE EFFECT HIGHER OIL PRICES AND THE CURRENT RECESSION IN INDUSTRIAL COUNTRIES MIGHT HAVE ON THE FUTURE DEMAND FOR OIL PRODUCTS, THE TWO COMPANIES ARE NOT, FOR THE TIME BEING, IN A POSITION TO PUT FORWARD A PROPOSAL TO DEVELOP THE PROJECT.
· SHELL, WHOSE ORIGINAL PROPOSAL FOR A REFINERY IN HONG KONG WAS SUBMITTED IN 1971, HAVE SINCE MARCH OF LAST YEAR BEEN STUDYING TOGETHER WITH DOW A SCHEME WHEREBY THE REFINERY WOULD PRODUCE FEEDSTOCK FOR A PETROCHEMICAL COMPLEX IN ADDITION TO OIL PRODUCTS FOR THE HONG KONG MARKET.
SHELL AND DOW HAVE INDICATED THAT AS A RESULT OF ANTICIPATED SURPLUS REFINING CAPACITY ELSEWHERE ARISING FROM LOWER GROWTH PROSPECTS IN THE DEMAND FOR OIL AND PETROCHEMICAL PRODUCTS, IT DOES NOT APPEAR THAT THE MINIMUM ECONOMIC LOADING FOR THE REFINERY COULD BE ACHIEVED UNTIL SOME TIME WELL INTO THE PERIOD BETWEEN 1980 AND 1985- SUCH A PROJECT, IF DEVELOPED PREMATURELY, WOULD NOT BE VIABLE AND WOULD CONTRIBUTE NO SIGNIFICANT BENEFIT TO THE HONG KONG CONSUMER.
SHELL AND DOW HAVE CARRIED OUT A THOROUGH INVESTIGATION OF POSSIBLE SITES FOR A REFINERY AND PETROCHEMICAL COMPLEX AS PART OF AN EXTENSIVE WORK PROGRAMME UNDERTAKEN BOTH IN HONG KONG AND ABROAD BY VARIOUS SPECIALIST -GROUPS. THE TWO COMPANIES CONCLUDE THAT THE OPTIMUM SOLUTION WOULD BE FOR A REFINERY AND A PETROCHEMICAL PLANT LOCATED ON TWO DIFFERENT SITES, BOTH ON LAMMA ISLAND, EACH OF APPROXIMATELY 300 ACRES. THE GOVERNMENT HAS BEEN GIVEN DETAILS OF THE PROPOSED SITES.
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THE TWO COMPANIES CONFIRM THAT SPECIAL ATTENTION WAS PAID DURING THEIR STUDIES TO THE ENVIRONMENTAL ASPECTS OF A REFINERY AND PETROCHEMICAL COMPLEX, IN THE LIGHT OF THE EARLIER REPORTS SPECIALLY COMMISSIONED BY THE GOVERNMENT AND OF THE UNDERSTANDABLE PUBLIC CONCERN THAT HAS BEEN EXPRESSED ON THIS ISSUE.
/SHELL AND DOJ .....