China stops new Sinopec and CNPC projects

Both firms fail to achieve anti-pollution targets.

The Chinese government suspended new projects from China National Petroleum Corporation and China Petrochemical Corporation or Sinopec after environmental regulators discovered that the energy giants failed in their anti-pollution targets.

The Ministry of Environmental Protection said the two companies cannot move forward with proposed refining projects and planned expansion and renovation of their facilities. It put these projects on hold indefinitely because of the violations.

CNPC missed the government's reduction goal for chemical oxygen demand, which is used to measure water pollution. Sinopec released excessive amounts of nitrogen oxide emissions, said the ministry.

The government said environmental impact assessments for CNPC and Sinopec's projects, which are needed for work to continue, won't be completed until it sees improvement from the two companies.

In June China's State Council, the country’s cabinet, vowed to strictly control polluting industries through new standards for small particulate matter less than 2.5 microns in diameter and phase out old equipment and power plants producing steel, cement and electrolytic aluminum.