Thanh Hoa to license oil refinery project
12-MAY-2008 Intellasia | Saigon Times Daily page 1
May 12, 2008 - 7:00:00 AM
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The developer for an oil refinery and petrochemical complex in the northern province of Thanh Hoa, Nghi Son Refinery & Petrochemical Limited Liability Company, will be introduced at a function on Saturday in the province.
Le Dinh Tho, director of the N ghi Son Economic Zone Authority, will award an investment certificate for the joint venture to develop an oil refinery and petrochemical complex at the zone with phase one requiring more than US$6 billion, said Bui Huy Hung, head of the zone's Investment Promotion Department.
The new company is 25.1% held by PetroVietnam, 35.1% by Japan's Idemitsu Kosan Co (IKC), 35.1% by Kuwait Petroleum International (KPI) and the rest by Japan's Mitsui Chemical, Inc.
At the ceremony on Saturday, the new company will also start work on site clearance for the complex, Hung told Daily on the phone yesterday.
The Nghi Son oil refinery, the country's second after Dung Quat refinery currently under progress in the central province of Quang Ngai, will cover 325 hectares in Tinh Gia District's Nghi Son Economic Zone, some 200 kilometres south of Hanoi.
According to the joint venture, the final investment figure will be verified upon completion of the US$200-million design for Nghi Son refinery in 14-16 months.
PetroVietnam said the Front End Engineering Design (FEED) contract of the project will be signed this June, while the engineering, procurement and construction (EPC) contract will be signed in July 2010.
In early April, the four partners in the joint venture clinched a deal in HCM City to develop the complex, witnessed by prime minister Nguyen Tan Dung and deputy prime ministers Nguyen Sinh Hung, Truong Vinh Trong and Hoang Trung Hai.
The joint venture said that the complex will open the first stage by 2013. In addition to LPG, unleaded gasoline, kerosene, jet fuel, diesel and FO, the refinery will produce bitumen, propylene, and raw materials for the petrochemical industry.
The oil refinery and petrochemical complex will have an initially designed refining capacity of 10 million tonnes a year, which could eventually reach 20 million tonnes down the road. The project will be designed to refine 100% Kuwaiti crude oil supplied by Kuwait National Petroleum Corporation, said Tran Ngoc Canh, general director of PetroVietnam.
He said when it comes into operation, the complex is projected to supply the northern market and other areas, contributing to the national energy security and firmly supporting the future development of the petrochemical industry and others.
Dung Quat refinery is being built by Technip-Coflexip of France, Japan's JGC Corp and Spain's Technicas Reunidas. The US$2.5 billion project will be able to refine 6.5 million tonnes of low-sulphur crude a year by the time it finishes in 2009.
Besides the oil refinery project complex, Nghi Son Economic Zone has licensed some 15 others in cement, steel, shipbuilding, and power plant. The total pledged capital in the zone so far exceeds US$8 billion.
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