Uncertainty shrouds Petrolimex’s US$4.5 bln petrochemical and oil refinery complex

26-Apr-10

Vietnam’s Van Phong Economic Zone Authority needs approximately VND15 trillion (US$769 mln) uptil 2015 as investment outlay for Petrolimex’s petrochemical and oil refinery complex. The US$4.5 bln complex, located in Ninh Hoa district’s Ninh Phuoc commune to be located on land and sea, is to refine 10 mln tpa of oil. Petrolimex is mulling a joint venture with a Chinese company to build the complex. Construction was expected to begin in 2011 and be completed by 2016 with a production to comprise plants to produce liquefied petroleum gas, petrol, gasoline, diesel oil, benzene, polypropylene and sulfur. The zone’s authority needs VND500 billion (US$25.6 mln) for 2010 and 2011, each, to build resettlement areas. The company is expected to approach the government for part of the sum, and mobilize other sources for the balance. At present, Vietnam has seven petrochemical and oil refinery projects with total capacity of 60-70 million tpa of oil, most of which are yet to come on stream.