Vietnam Oil and Gas Group (PetroVietnam) has proposed the Ministry of Industry and Trade to turn down proposals for a USD27-billion oil refinery project invested by PTT Public Company Limited (PTT).
Dung Quat Oil Refinery currently meets just 30% of domestic petroleum demand
The investor has finished a feasibility study of the project which would be located at Nhon Hoi Economic Zone in Binh Dinh Province. The project has a designed capacity of 660,000 barrels per day, a five fold increase over the current Dung Quat Oil Refinery’s output.
The People’s Committee of Binh Dinh Province is seeking government approval for adding the project to the province’s planning and allowing the investor implement the project.
Earlier, the Thai firm worked with the Ministry of Industry and Trade on the project.
According to PetroVietnam, the ministry should not approve the project in order to avoid an imbalance in the domestic oil and gas market. The country’s gas sector’s development planning by 2015 excludes the Nhon Hoi oil refinery plant.
PetroVietnam also said that the huge project is located near to Vung Ro, Van Phong and Dung Quat which already have plans for the construction of oil refinery plants.
Once entering operation, Vietnam’s biggest foreign-invested project, PetroVietnam’s USD9-billion Nghi Son Oil Refinery and Petrochemicals Complex and Dung Quat Oil Refinery could ensure 50% of the local demand annually. Dung Quat Oil Refinery currently meets just 30% of domestic petroleum demand.
The Vietnam National Petroleum Group has also been assigned to implement Nam Van Phong Refinery project with an annual capacity of 10 million tonnes.
