Vietnam’s second oil refinery announced

Vietnam’s second oil refinery announced

Vietnam's second oil refinery, the US$9 billion Nghi Son plant, will be located in the Nghi Son Economic Zone in Thanh Hoa Province, and is expected to begin commercial production in 2017, the state-run Vietnam Oil and Gas Group (PetroVietnam) announced on Tuesday.

Construction is scheduled to start in the second quarter of this year, and it is expected that the project will be completed in the fourth quarter of 2016, the company said.
The 400-hectare plant will source crude oil from Kuwait, and will have a total capacity of 200,000 barrels a day, and 10 million tons a year.

It will be Vietnam’s second refinery after the Dung Quat Refinery in Quang Ngai Province, which started commercial operations in 2009.

PetroVietnam only holds a 24.1 percent stake in the Nghi Son plant, while Idemitsu Kosan Co., a Japanese refiner, and Kuwait Petroleum International Ltd. each hold 35.1 percent. The remaining 4.7 percent interest goes to Japan-based Mitsui Chemicals Inc.

The plant will help meet some 40 percent of domestic demand for fuel, while Dung Quat currently serves 30 percent.

Vietnam will thus only have to import 30 percent of its fuel demand following the opening of Nghi Son.

tuoitrenews