09 December 1996 00:00 [Source: ACN]
CHINESE Petroleum Corp (CPC) said it is no longer eyeing Vietnam's second refinery project proposed near Haiphong as PetroVietnam prefers to concentrate on the first project for now.
CPC was invited to co-invest the project earlier this year.
PetroVietnam said plans for the second project will have to wait for at least three years. 'Anyway, waters at Dinh Vu Island near the port city of Haiphong are too shallow for big tankers to transport feedstock. We need to do a site survey first,' a PetroVietnam spokesman said. Nghi Song is the alternative site for the second refinery.
The first refinery project at Dung Quat is still awaiting the approval of the Vietnamese government. Feasibility studies have already been completed. The refinery is expected to start up in 2000.
CPC said the partners in the project are anxious to know what kind of tax incentives Vietnam will offer them, since the investment rate of return is expected to be low.
The LG Group holds a 30% stake in the joint venture, Petronas and Conoco 15% each, CPC 10% and PetroVietnam 30%.
Vietnam incentives: p7
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