Construction of a giant China-Kuwait petrochemical project is underway on Donghai Island in the port city of Zhanjiang, in the west of Guangdong province.

Local authorities said the Sinopec and Kuwait Petroleum Corp project is designed to process 15 million tons of crude oil annually and produce more than 1 million tons of ethylene.

The refinery that will use crude oil from Kuwait is due to be completed and operational by 2016. The ethylene production facility is due to start operating in 2017, according to authorities.

A cornerstone-laying ceremony for the 59 billion yuan ($9.6 billion) project was held in Donghai on Nov 18, 2011.

The facility is the largest Sino-foreign petrochemical project to be built on the Chinese mainland.

"The petrochemical project has great significance in enhancing the country's energy safety and further boosting economic growth in the western part of Guangdong, which borders the Guangxi Zhuang autonomous region," said a local official.

Economic development in western Guangdong lags far behind the prosperous Pearl River Delta bordering Hong Kong and Macao, due to poor communication and other infrastructure facilities, the official said.

Zhanjiang, which faces Hainan province in the south, is one of the 13 prefecture-level cities in Guangdong with a per capita GDP below the national average. Its GDP is expected to expand by at least 15 percent annually to reach 400 billion yuan in 2016, according to the city's development plan.

The official said the petrochemical project was also expected to help build Zhanjiang - a major aquatic product base in China - into an industrial powerhouse in Guangdong and help further expand Zhanjiang's economic ties with other parts of the country and the rest of the world.

Zhanjiang is the southwestern gateway for Guangdong province to expand its cooperation with Southeast Asia.

After the project begins operation, it is expected to bring in an annual income of more than 100 billion yuan and pay 20 billion yuan worth of tax annually to the State, according to the official.

He said the project would use new and advanced imported equipment and would introduce advanced technology to ensure emissions and discharges meet the State's requirements. He said the project could become a role model for China's petrochemical industry.

A large amount of money has been invested in environmental protection and the project will adopt the most advanced standards in energy-saving and emission reduction in the world.

"Zhanjiang's environment and air quality will remain intact after the petrochemical project begins operation in the future," the official said.

The project passed strict environmental protection assessments by the Ministry of Environmental Protection before construction started.

Zhanjiang boasts the best quality of coastal water in the country and is ranked among the top three areas for air quality from 113 large and medium-sized cities.

A special committee was set up among the city government and operators of the city's steel and petrochemical projects to build a State-level demonstration zone on Donghai island, which is also expected to be a tourist attraction.

Industrial waste from the petrochemical project will be recycled and treated to meet the State's requirements in the following years.

"We hope Donghai Island will always boast its ecological beauty, while Zhanjiang will not only become an emerging economic power, but also a city with blue sky and clean water," the official said.