Site preparation works for the proposed refinery and petrochemical complex jointly owned by Kuwait, Japan and Vietnam is proceeding "as scheduled," while the investors are exploring possibility of investment cuts, major Japanese refiner Idemitsu Kosan Co. said Monday. "We are aiming to put the plant into operation in 2014," the Tokyo-based firm said in a statement to Kuwait News Agency (KUNA).
The Nghi Son Petrochemical Refinery Complex, the largest and most important refining project in energy-hungry Vietnam, will be located in 180 kilometers south of Hanoi. It will be capable of treating 200,000 barrels of crude oil per day (bpd), 1.5 times more than the capacity of Vietnam's first refinery Dung Quat in the central region.
Asked about the announcement of a winning bidder that will partake in construction of the plant, Idemitsu said, "With a view to reduce construction costs, the joint venture partners have agreed to take time selecting the winner to sign the engineering, procurement and construction contract with." The actual construction costs will be finalized based on a tender price, Idemitsu said, expressing hope that investment amount will be eliminated from an initial estimate of USD six billion.
Kuwait Petroleum International (KPI), an international unit of Kuwait Petroleum Corporation (KPC), and Idemitsu each own a 35.1 percent stake in the joint project, with state-owned PetroVietnam and Japan's Mitsui Chemicals Inc. putting up 25.1 percent and 4.7 percent, respectively. KPI guarantees to supply 100 percent of crude oil for the project in the long-term.
British engineering giant Foster Wheeler completed the master design for the plant in 2009, Idemitsu said. Meanwhile, the Vietnamese authorities have been pursuing the relocation of local residents, explosive clearance, and other groundwork for the refinery site.
The new facility will be designed to process Kuwaiti crude into gasoline, diesel oil and other petroleum products for Vietnam, Idemitsu said, adding that paraxylene, benzene and polypropylene are expected to be sold in neighboring countries. The oil refinery would supply fuels equal to 60 percent of Vietnam's domestic consumption, and its capacity would be doubled to 400, 000 bpd in the future if demand is high. The project is expected to be financed with a debt-equity ratio of 70:30, according to the initial plan. Idemitsu said the participating companies are currently in talks with the government-affiliated Japan Bank for International Cooperation and other banks to secure funds.
The trilateral project will bring together Kuwait's long-term stable crude oil supply and Japanese firms' expertise in refining and petrochemical business to Vietnam, where demand for oil products is rapidly increasing.
The Nghi Son Petrochemical Refinery Complex, the largest and most important refining project in energy-hungry Vietnam, will be located in 180 kilometers south of Hanoi. It will be capable of treating 200,000 barrels of crude oil per day (bpd), 1.5 times more than the capacity of Vietnam's first refinery Dung Quat in the central region.Asked about the announcement of a winning bidder that will partake in construction of the plant, Idemitsu said, "With a view to reduce construction costs, the joint venture partners have agreed to take time selecting the winner to sign the engineering, procurement and construction contract with." The actual construction costs will be finalized based on a tender price, Idemitsu said, expressing hope that investment amount will be eliminated from an initial estimate of USD six billion.
Kuwait Petroleum International (KPI), an international unit of Kuwait Petroleum Corporation (KPC), and Idemitsu each own a 35.1 percent stake in the joint project, with state-owned PetroVietnam and Japan's Mitsui Chemicals Inc. putting up 25.1 percent and 4.7 percent, respectively. KPI guarantees to supply 100 percent of crude oil for the project in the long-term.
British engineering giant Foster Wheeler completed the master design for the plant in 2009, Idemitsu said. Meanwhile, the Vietnamese authorities have been pursuing the relocation of local residents, explosive clearance, and other groundwork for the refinery site.
The new facility will be designed to process Kuwaiti crude into gasoline, diesel oil and other petroleum products for Vietnam, Idemitsu said, adding that paraxylene, benzene and polypropylene are expected to be sold in neighboring countries. The oil refinery would supply fuels equal to 60 percent of Vietnam's domestic consumption, and its capacity would be doubled to 400, 000 bpd in the future if demand is high. The project is expected to be financed with a debt-equity ratio of 70:30, according to the initial plan. Idemitsu said the participating companies are currently in talks with the government-affiliated Japan Bank for International Cooperation and other banks to secure funds.
The trilateral project will bring together Kuwait's long-term stable crude oil supply and Japanese firms' expertise in refining and petrochemical business to Vietnam, where demand for oil products is rapidly increasing.
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