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.

《每日经济新闻》报道，中国石化将投资1000亿在江苏连云港元建设炼油一体化项目。

在其建成后，将成为中国最大的炼油一体化项目，炼能超过每年3000万吨。

该炼油一体化项目的一期工程有望2013年通过发改委核准并开建， 并于2016年投产。

另外，现阶段还没有明确中国石化与当地政府在此项目上的投资比例。

中投顾问能源行业研究员宛学智在接受《每日经济新闻》记者采访时表示，"该项目原油将主要来自中东地区，炼油项目的业绩受原油价格影响较大，但是储备体系的建立有利于降低原油价格波动对其产生的冲击。"