Sinopec has announced plans to build a 100-billion yuan oil refinery at Lianyungang, an industrial port in northeast China's Jiangsu Province, the National Business Daily reported.

The complex will be China's largest refinery yet, with a projected annual processing capacity of 32 million metric tons.

The National Development and Reform Commission, China's top economic policymaking body, is expected to approve the first stage of construction on the complex in 2013. Sinopec hopes to begin operating the refinery by 2016.

The local government will take a stake in the project, but it hasn't reached an agreement with Sinopec yet on how costs for the project will be split.

Crude oil for refinery will primarily be imported from the Middle East Wan Xuezhi, a researcher from CIConsulting, told National Business Daily. But the oil reserves Sinopec has built up will help the company offset oil price shocks from instability in the region, he said.

《每日經濟新聞》報道，中國石化將投資1000億在江蘇連云港元建設煉油一體化項目。

在其建成后，將成為中國最大的煉油一體化項目，煉能超過每年3000萬噸。

該煉油一體化項目的一期工程有望2013年通過發改委核準并開建， 并于2016年投產。

另外，現階段還沒有明確中國石化與當地政府在此項目上的投資比例。

中投顧問能源行業研究員宛學智在接受《每日經濟新聞》記者采訪時表示，"該項目原油將主要來自中東地區，煉油項目的業績受原油價格影響較大，但是儲備體系的建立有利于降低原油價格波動對其產生的沖擊。"