Vietnam's Largest Petrol Warehouse to Be Built in Central Region

Vietnam’s Largest Petrol Warehouse to Be Built in Central Region

Vietnam National Petroleum Corporation (Petrolimex), Petrolimex PJICO and Singapore’s PB Tankes Limited signed a US$100-million agreement February 25 to build a bonded fuel storage warehouse on an island off Van Phong Bay, central Khanh Hoa province.

This is the largest petrol warehouse in Vietnam so far, according to Petrolimex.

The first phase of the construction is expected to be complete within 30 months with an estimated investment of US$60 million, Petrolimex said.

Another US$40 million will be invested into the second phase, doubling its designed storage capacity of one million cubic meters.

The facility also includes wharves capable of accommodating 150,000-DWT ships.

The warehouse is expected to handle 5-6 million cubic meters of oil and gas per annum, the operator said.

The facility will expand Vietnam’s fuel storage capacity and help stabilize the domestic fuel market when there are changes in the international market, analysts commented.

The joint venture is held Petrolimex with dominant 55 per cent shares, PB Tankes Limited 30 per cent and Petrolimex PJICO 15 per cent.