New Deals Boost Nghi Son Refinery Project

The Vietnam National Oil and Gas Group (PVN) and the Nghi Son Refinery and Petrochemical LLC (NSRP) signed a number of agreements with domestic and foreign partners yesterday to lay the groundwork for the construction of a new oil refinery project.

The Nghi Son Refinery and Petrochemical Complex will be constructed on area of 400 hectares in the Nghi Son Economic Zone, Thanh Hoa province.

The refinery has a planned capacity of 200,000 barrels per day, the equivalent of 10 million tonnes per year. Crude oil for refining will be supplied by Kuwait Petroleum International.

The project requires investment capital of nearly US$9 billion, US$5 billion of which will be borrowed from international funds.

Major products of the plant include liquefied petroleum gas, petrol, diesel, kerosene, polypropylene, paraxylene, benzene and sulphur.

PVN will have a 25.1% stake while Kuwait Petroleum International (KPI) and Idemitsu Kosan Co. (IKC) will each hold a 35.1% stake and Mitsui Chemicals Inc has 4.7% in the Nghi Son Refinery.

The engineering, procurement and construction (EPC) contract was awarded to a consortium formed by Chiyoda Corporation, GS Engineering & Construction Corporation, SK Engineering & Construction Co., Ltd, Technip France and Technip Geoproduction (M) Sdn. Bhd.

The complex is scheduled for completion in the fourth quarter of 2016 with commercial production rolling out in 2017, meeting 40% of Vietnam’s fuel demand.

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