Vietnam’s PetroVietnam and Vinachem and Thailand’s SGC and TPC expect to discuss the plan for the building of Long Son refinery in Vietnam’s Ba Ria-Vung Tau province in July 2007.
Long Son refinery is expected to locate on Long Son Island, about 125 km north off Ho Chi Minh City.
Long Son is estimated to cost US$2 billion for construction, Dau Tu (Investment) newspaper, the mouthpiece of Ministry of Planning and Investment, said.
In December 2006, Vietnam National Oil and Gas Group (PetroVietnam), Vietnam Chemicals Corp. (Vinachem), SGC amd TPC signed a memorandum of understanding to build a complex capable of processing 1.5 million metric tons of condensate, 500,000 tons of ethylene and input materials for local plastic plants.
The four hoped the refinery will go on-stream in 2011.
The newspaper said SCG is preparing for the feasibility study for the joint venture refinery. The study is expected to start in the fourth quarter of this year.
Recently, US-based Shaw Stone & Webster International Inc. and Gannon wanted to build wholly foreign-invested Long Son oil refinery.
A source said the Import - Export Bank of the United States (Eximbank) has agreed to arrange US$1.5 billion for Long Son refinery while the United States Trade Development Agency (USTDA) pledged to fund the feasibility study on Long Son oil refinery.
A source from PetroVietnam said Venezuela’s Petroleos de Venezuela SA (PdVSA) already agreed in principle to join the refinery with PetroVietnam.
Long Son oil refinery is the third in the country after underway Dung Quat and blueprint Nghi Son. Vietnam expects Dung Quat to starts commercial operations in early 2009 and Nghi Son by 2013.
Vietnam is now heavily reliant on imported petroleum, which is estimated to reach 13.3 million metric tons this year, up over 20 per cent on year. (Investment)
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