HCM City (VNA) – A joint venture contract on Nghi Son oil refinery and petrochemical project was signed in Ho Chi Minh City on April 7.
The complex, the largest so far, will be built in Nghi Son commune, Tinh Gia district of the central province of Thanh Hoa with an investment capital of 6 billion USD for its first phase.
The joint venture is between the Vietnam National Oil and Gas Group (PetroVietnam) and Kuwaiti and Japanese partners.
Prime Minister Nguyen Tan Dung, Deputies Prime Ministers Nguyen Sinh Hung and Truong Vinh Trong, and Kuwaiti Oil Minister Mohammad Al-Aulaim attended the signing ceremony.
PM Dung expressed his pleasure to witness the signing of a project, which he said is important to the oil and gas sector’s development strategy, ensuring national energy security and contributing to the country’s socio-economic development.
The first phase includes the construction of an oil refinery with an annual capacity of 7 million tonnes of crude oil, a polypropylene plant with an annual manufacturing capacity of between 150,000-350,000 tonnes and a polyester fibres plant that is expected to pump out 260,000 tonnes a year.
When the first phase of the project is completed, it will turn out 10 million tonnes of products a year using all materials form the Kuwait National Petroleum Company.
The project is expected to be put into commercial operational in 2013.
The project’s capacity will be raised to 20 million tonnes a year in the second phase.
Once operational, the plant will produce liquefied petroleum gas (LPG), petrol for classes 90, 92 and 95, kerosene, diesel, FO, jet fuel and other petrochemical products such as polypropylene, polyester, benzel, sulfur and asphalt.