Nghi Son refinery starts commercial operation in November
Nghi Son refinery starts commercial operation in November
Nghi Son Petrochemical Refinery invested by Nghi Son Refinery Co., Ltd. (NSRP) may come into commercial operation on November 15 this year, after more than four years of construction.
According to the plan, along with major products like gasonline, diesel, and jet fuel for the local market, NSRP plans to export products from the refinery.
Shintaro Ishida, general director of Nghi Son Petrochemical Refinery, said, “The Vietnamese government approved in principle for NSRP to export products, however, the firm still has to get licences for each batch of products.”
This month, the plant is expected to start pilot operation at its full designed capacity and then the investor will conduct acceptance tests and complete the remaining procedures to begin commercial operation in November.
Once the plant operates with the full designed capacity of 10 million tonnes of crude oil, Nghi Son Petrochemical Refinery will contribute to decreasing petroleum and diesel imports.
According to the plan, in this year alone, the plant will import six million tonnes of crude oil and sell four million tonnes of finished products.
Earlier on May 1, the pilot operation (at reduced capacity) of Nghi Son Petrochemical Refinery was officially launched and produced the first batch of RON A92 petrol. RFR has a capacity of 5,000cu.m of petrol products.
Besides, on May 23, the plant also successfully produced 5,000 cubic metres of diesel oil (DO) meeting all required specifications and sold it on the domestic market.
Located at Nghi Son Economic Zone in the central province of Thanh Hoa with the total investment capital of over $9.3 billion, it is invested by a consortium of Kuwait International Petrochemical Company (KPI, 35.1 per cent), Idemitsui Kosan (IKC, 35.1 per cent), and Mitsui Chemicals (MCI, 4.7 per cent). The rest is contributed by state-run Vietnam Oil and Gas Group (PetroVietnam).
The project has enjoyed numerous incentives, including 10 per cent of corporate income tax for up to 70 years. This will be compensated from PetroVietnam’s budget between 2017 and 2027 if the market tax rate is lower than the preferential tax rate of the project. NSRP is exempt from corporate income tax for four years and has to pay 10 per cent for the next 70 years.
The plant will produce LPG, gasoline (RON 92, 95), diesel (high grade, conventional), kerosene/jet fuel, polypropylene, paraxylene, benzene, and sulphur products.
