The Executive Yuan yesterday offered conditional support for the economic ministry's controversial decision to relocate the Taoyuan refinery of the state-owned Chinese Petroleum Corp (CPC, 中油).
"The Executive Yuan fully respects the decision made by the Ministry of Economic Affairs on the relocation plan," Cabinet Deputy Secretary-General Liu Yu-shan (劉玉山) quoted Premier Yu Shyi-kun as saying during a press conference held at the Executive Yuan yesterday afternoon.
On Monday, Minister of Economic Affairs Lin Yi-fu (林義夫) surprised CPC officials when he signed an agreement with representatives of residents to relocate the complex.
With relocation of the facilities expected to be a major undertaking, Liu said that the premier has requested the economic ministry present a feasible plan as soon as possible.
"We won't give it the go-ahead until the ministry comes up with a well-thought-out plan," Liu said, adding that the plan should include financing plans, site location, an environmental impact assessment and an alternative supply plan.
It is estimated that relocation -- including the purchase of land -- will cost between NT$150 billion and NT$200 billion and take about 10 to 20 years to complete, a high-ranking CPC executive said Monday.
The refinery, which became operational in 1977, processes one sixth of the nation's crude oil.
Yu also asked the ministry to srtrive for improving public safety at the refinery and other refineries around the island.
Statistics made available by the Self-help Association of Residents Living Near Taoyuan Refinery show that the refinery has had 17 public-safety accidents over the course of 15 years.
The last accident took place on Jan. 22 this year when an explosion occurred in the equipment designed to remove sulfur from heavy oil at the refinery.
Although no casualties were reported, area residents fear that the facility is unsafe. They took their case to the ministry on Monday to protest against CPC.
Promising to come up with a comprehensive plan within a year, Liu yesterday said that no timetable has been set as to when and where the plant will be moved.
"We won't be able to know when or where to move the refinery until the environmental impact assessment is complete," Liu said. "The process may take quite some time."
Liu also dismissed talk that Lin signed the agreement under pressure from residents, environmentalists and lawmakers.
"The decision is a professional and rational one. It was not made under pressure," Liu said.
According to Liu, Lin told him over the telephone earlier yesterday that he had signed the agreement mainly for "sustainability" reasons.
"The company has to upgrade its global edge in the competitive oil market," Liu said.
"Besides, it's not a good idea to have a refinery situated in the city and near freeways," Liu said.
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