Vietnam Oil and Gas Group (PVN) will next month sign an engineering,
procurement and construction (EPC) contract with a consortium of five
contractors to carry out the Nghi Son oil refinery plant project, said Do Van
Hau, general director of PVN.
The contractors are Japan’s JGC
Corporation and Chiyoda, France’s Technip Coflexip, South Korea’s GS
Engineering & Construction, and SK Engineering & Construction. JGC
Corporation is the representative of the consortium.
The feasibility study for the
project located in the north-central province of Thanh Hoa has been completed.
Related sides are preparing to sign the EPC agreement in December to start work
on the project in May 2013, he said.
The project’s scale was approved
about seven years ago with a total investment of more than $6.2 billion. It was
designed with total annual capacity of some 8.4 million tonnes, or 180,000
barrels of oil a day, with the EPC bidding package estimated at over $5 billion
in value.
Involved parties have contributed
capital to set up a company named Nghi Son Oil Refinery and Petrochemicals
Company to operate the future oil refinery, with PVN holding 21.1 per cent,
Kuwait’s Petroleum Group 35.1 per cent, Japan’s Idemitsu Kosan Petroleum Group
35.1 per cent and Mitsui Chemicals 4.7 per cent.
The plant is set for completion
in 2014 and will focus on producing liquefied petroleum gas (LPG) and gasoline
products A92, A95 and A98, jet fuel and diesel oil. It is the second largest
oil finery plant project in Vietnam in terms of the scale after the Dung Quat
oil refinery plant.
When in place, the facility along
with the Dung Quat plant is expected to meet 50 per cent of local fuel demand.
Foreign media earlier this month
reported that Idemitsu Kosan had decided to delay investment into the oil
refinery project but Hau of PVN on November 8 told local media that such a
decision had no impact on the scheme’s construction.
The management board of the Nghi
Son Economic Zone in May 2008 handed the investment certificate for the Nghi
Son oil refinery plant to Nghi Son Oil Refinery and Petrochemicals Company.
Kuwait’s Petroleum Group will
supply crude oil to the project, at about 10 million tonnes per annum in the
first phase. The group will possibly increase the volume to 20 million tonnes
annually after the project is expanded in the future.
SGT
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd (SBC), Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. Since we are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.
No comments:
Post a Comment