Thai PTT Public Company Limited (PTT) plan to borrow 60% of capital for the USD27-billion oil refinery project.
Dung Quat Oil Refinery currently meets just 30% of domestic petroleum demand
A delegation from the provincial government of Binh Dinh Province, the expected location of the refinery, recently met with leaders of PTT to discuss how to make progress on the project.
The two sides agreed that of the USD27 billion total investment, 40% would come from investor’s equity and the rest would be loans.
PTT pledged to contribute to at least a third of the project’s equity while the remainder would come from its domestic and foreign partners.
The provincial government and PTT plan to seek the government’s approval in late May or early June for the investor to implement the project.
If approved, they would continue to complete a feasibility study on the project as well as other related procedures for the implementation.
Even though the project is still at the pre-feasibility study, it has met resistance from rival firms.
While Vietnam Oil and Gas Group (PetroVietnam) opposed the project for fear of diluting their influence over the domestic oil and gas market, the Ministry of Industry and Trade as well as provincial authorities and several experts have supported the implementation.
The investor proposed the project at Nhon Hoi Economic Zone in Binh Dinh Province with a designed capacity of 660,000 barrels per day, a five-fold increase over Dung Quat Oil Refinery’s output.
When approved, it would be the biggest oil refinery project in Vietnam.