Vung Ro Petroleum is ready to start hammering out Vietnam’s third oil
refinery by the year’s end.
The investor, Vung Ro Petroleum
Ltd., last week reached managing licensor and technology transfer agreement
with Honeywell’s UOP, a leading international licensor for the refining and
petrochemical production, for the design and engineering of the refinery in
central Phu Yen province.
The signing ceremony was
witnessed by US’s commercial counselor in Vietnam Sarah Kemp and leaders of Phu
Yen Provincial People’s Committee.
“This is a very important step to
implement the project. UOP is a well-known licensor for refining and
petrochemical technology in the world, which will provide us not only the
technology but also solutions to build and operate the refinery,” said Korolev
Kirill, general director of Vung Ro Petroleum Ltd.
Korolev said an engineering,
procurement and construction contractor (EPC contractor) could be selected in
the upcoming months. Last year, the investor and local authorities also
completed siteclearance that had lasted for four years, a barrier coupled with
the global financial crisis.
The investor plans to break
ground by the year’s end and Korolev said all the needed preparation for the project’s
construction had almost been completed, adding that the agreement with UOP LLC
would ensure Vung Ro Petroleum Ltd.owns the latest refining technology.
When on streams by 2016, this
refinery will produce a wide range of products including LPG, gasoline,
gasoline, jet fuel, diesel, fuel oil, polypropylene, benzene, toluene
andmix-xylene meetingdemand of local market and export.
Vung Ro’s top management has also
adopted “fast track” method for the project which will allow the combination of
front-end engineering design and engineering procurement, construction into one
contract to optimise costs and time schedule for the whole project.
According to experts in the
field, by implementing “fast track” method, investor could reduce
implementation time for the project from at least 18-24 months.
The refinery project will not
only help in reducing Vietnam’s reliance on imported fuel, but also mark a
milestone for improving investment climate in Phu Yen, a coastal central
province located 400 kilometres north of Ho Chi Minh City.
Nguyen Chi Hien, director of Phu
Yen Provincial Department of Planning and Investment, said this project would
be a magnet luring other industrial supporting projects to Phu Yen.
“Once Vung Ro refinery is
constructed, we expect many investors will follow Vung Ro Petroleum Ltd. to
invest in petrochemical industry here,” said Hien.
In 2007, a Singapore-based SP
Chemicals proposed to build naphtha cracking Hoa Tam complex in Phu Yen.
Nevertheless, the company canceled its plan in 2009 due to the global financial
crisis.
Hien said the provincial
committee still wanted to develop Hoa Tam petrochemical complex, especially now
that Vung Ro refinery construction is about to start.
Ngoc Linh | vir.com.vn
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