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Capital for Long Son oil refinery project ready next year

Partners in the consortium developing Long Son oil refinery project in the southern coastal province of Ba Ria-Vung Tau are expected to secure capital for the US$4.5-billion project by the end of next year, said a major stakeholder in the project.

Kan Trakulhoon, chairman of SCG with 28% interest in the project, told the Daily on the occasion of the 100th birthday of his group in HCMC late last week that shareholders would bear the responsibility of borrowing funds for the scheme.

Reaching consensus on the capital arrangement is an important step for the project owners to develop the project and turn out products in 2018 as scheduled, he noted.

Other preparatory steps for the project are also being done smoothly, with more than 400 hectares of cleared land area handed to project owners by the provincial government in August, Kan said.

Similarly, Qatar International Petroleum Marketing as the exclusive liquefied petroleum gas (LPG) distributor of Qatar also signed a long-term contract with the project owners to supply propane and naphtha for the grinding plant. PV Gas under the Vietnam National Oil and Gas Group (PetroVietnam), meanwhile, is committed to providing ethane for Long Son oil refinery complex.

SCG now is a major stakeholder in the project, the others being Qatar Petroleum, PetroVietnam and Vietnam National Chemical Group.

Long Son oil refinery complex has a designed capacity of 1.4 million tons of olefins with a flexible grinding technology using ethane, propane and naphtha as input materials. It includes many other auxiliary components like a port, a wharf, warehouses and a power plant.

With the integrated grinding technology, the plant can make products such as polyethylene (PE), polypropylene and vinyl chloride monomer for domestic sale.

In related news, the government of the central province of Phu Yen issued a license on Sunday for the adjusted the Vung Ro oil refinery plant project of Vung Ro Petroleum Co.

With the adjusted investment certificate, the project needs roughly US$3 billion compared to the registered capital of US$1.7 billion planned earlier, with its capacity doubling the previous level.

The project has a total area of over 1,000 hectares at Nam Phu Yen Industrial Park in Dong Hoa District. It has an annual designed capacity of eight million tons, turning out PE, benzene, toluene, xylene, propane and LPG among other products.

 

Source: Saigontimes