ExxonMobil explores $10 billion refinery investment in Van Phong Economic Zone

ExxonMobil explores $10 billion refinery investment in Van Phong Economic Zone

ExxonMobil has begun surveying Van Phong Economic Zone in Khanh Hoa as part of its search for a location to host what could become its first near zero-emission refinery in Asia-Pacific, with a total investment estimated at $10 billion.

Van Phong Economic Zone in Khanh Hoa. Photo: Minh Ha

During a working session on August 19, Khanh Hoa Economic Zones Management Authority introduced ExxonMobil's executives to the zone's strategic advantages, including multi-functional infrastructure, diverse industrial and service ecosystems, and investment incentives. The delegation toured Nam Van Phong Port, Van Phong bonded fuel warehouse, and Ninh Tinh village in Ninh Hoa town to gain a comprehensive perspective on potential development sites.

Founded in 1999, ExxonMobil is one of the world's largest energy corporations, operating 37 refineries across 21 countries and employing more than 72,000 people. In 2024, the company reported revenue of approximately $344.6 billion.

ExxonMobil has maintained a presence in Vietnam since 2008 through upstream exploration. Its long-standing partnership with Petrovietnam and PVEP has centred on developing the Blue Whale gas-to-power chain in central Vietnam, which will provide feedstock for 3GW of power generation capacity. Despite years of negotiations, the project has yet to advance to construction. In addition, ExxonMobil has joined forces with Jera and VinaCapital to study a $5.09 billion LNG power project in Haiphong with a planned capacity of 4,500MW.

The Van Phong initiative, if realised, would mark ExxonMobil's largest downstream investment in Vietnam and one of its most ambitious refinery projects globally. According to initial plans, the site selection process will run until 2027, with licensing and construction to commence around 2031. The facility could begin commercial operations by 2035.

Tran Minh Chien, head of the authority, said local authorities and ExxonMobil have maintained regular exchanges to align expectations. "We aim to provide the most favourable conditions for ExxonMobil to evaluate investment opportunities. By coordinating with provincial leaders and relevant agencies, we will ensure the company has access to all necessary information to make an informed decision," he noted.

VIR