Sinopec's statement followed an earlier report from business media Caixin saying Sinopec would move the Yanshan oil refinery to the district of Caofiedian. Yanshan is one of Sinopec's largest plants in northern China, capable of refining 10 million tonnes per year of crude, or about 200,000 barrels per day.

Caixin said the relocation will help save water resources for Xiongan, citing Xu Kuangdi, chief adviser for the planning for the Xiongan economic zone.

Yanshan's fresh water consumption has dropped by 60 percent in the past ten years, Sinopec said in the statement. In 2016, Yanshan used 0.46 tonnes of water to refine 1 tonne of crude oil.