PM greenlights Phu Yen refinery capacity increase
PM greenlights Phu Yen refinery capacity increase
The Vung Ro oil refinery’s production capacity in the central coastal province of Phu Yen will increase from 4 million tonnes to 8 million tonnes per year, according to chinhphu.vn.
The approval was made by Prime Minister Nguyen Tan Dung at the request of the Phu Yen People’s Committee and the Ministry of Planning and Investment.
The PM has also agreed in principle to revise the location of the oil refinery project to include a specialised sea port.
The province will have to meet the requirements of advanced technology and ensure environmental safety before licences are issued.
The expected US$3.1 billion project is a joint-venture between the UK-based Technostar Management and Russia’s Telloil Group.
The Government will allow investors to enjoy several special incentives involving zero export tax and oil distribution.
According to Dau Tu newspaper, after revising the project’s production capacity and raising investment capital from $1.7 billion to $3 billion, operations at the refinery would be pushed back to the middle of this year.
The move is in line with the strategic development of Viet Nam’s oil and gas industry while the country is in the process of international integration.
The additional investment was intended to meet domestic demand and provide additional petrochemical products for export, according to the provincial committee.
The construction of this project would have a positive impact on the province’s economic development in its process of industrialisation.
The Ministry of Finance instructed the Phu Yen People’s Committee to provide details of investor fundings so the PM can determine how much State support would be necessary for additional infrastructure relating to roads, electricity, water and telecoms.
The Ministry of Planning and Investment has been given the responsibility of allocating funds from the State coffers to develop the Phu Lac Resettlement Area, Phu Lac fishing-port, and National Highway 1 from Phu Khe commune to Hoa Tam Industrial Zone in Phuoc Tan commune.
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