An unfulfilled dream

28 February 2005 00:01  [Source: ACN]

ACN looks at important dates in the development of PetroVietnam’s refinery and petrochemical projects over the last ten years

1995

March – Total, Chinese Petroleum Corp (CPC) and China Petrochemical Development Corp (CPDC) (formerly China Investment and Development Co) conduct feasibility study on the No 1 refinery project.

July – The government approves two polyvinyl chloride (PVC) joint-venture projects – Mitsui Chemicals, Mitsui & Co, Thai Plastics and Chemicals, and two local firms are to build an 80 000 tonne/year plant in Dong Nai, and Marubeni, Occidental Chemical, PetroVietnam, and Tramatsuco are to build a 100 000 tonne/year plant in Ba Ria-Vung Tau, Phu My.

LG Chem sets up a joint-venture company, VLG Chem, with LG International, and South Fertiliser and Petrochemical Co to build a 30 000 tonne/year dioctyl phthalate (DOP) plant in Dong Nai.

September – Total drops out of the No 1 refinery project after the government decides to locate the project in Dung Quat in the underdeveloped central region.

December – Petronas says it will collaborate with the Vietnamese government to prepare a Petrochemical Master Plan.

1996

January – PetroVietnam invites Petronas, Conoco and the LG Group to join the No 1 refinery. The three companies sign a shareholding agreement, with the LG Group and Petronas/Conoco each taking a 30% stake, and CPC and CPDC holding a combined 10% share. PetroVietnam retains a 30% share and agrees to conduct a feasibility study on the project.

September – Mitsubishi Chemical and Mitsui Chemicals (formerly Mitsui Petrochemical Industries) prepare a feasibility study on a polypropylene (PP) project downstream of the No 1 refinery.

Petronas replaces Occidental Chemical as Marubeni’s partner for the PVC project.

November – The LG Group submits a four-stage petrochemical development proposal to the government.

1997

January – Stone & Webster agrees to take a 3% share in the refinery joint venture, while LG International’s share drops to 27% from 30%.

February – The refinery joint-venture proposal is dropped, as the government is unable to accept the terms of the six-member foreign team.

May – LG Chem, Amoco, Mitsubishi, and Mitsui join the race to be PetroVietnam’s partner in the PP project downstream of the No 1 refinery. Univation and Marubeni also vie for project.

June – PetroVietnam, Vinachem, Finansa Thai, and Malaysian company Ancom agree to form a joint venture for a 660 000 tonne/year methanol plant.

July – PetroVietnam says it will select just one foreign partner for its first refinery in Dung Quat instead of going solo.

October – PetroVietnam changes its mind and decides to go solo; starts preparatory work at the site; aims to start up the project in 2001.

November – LG Vina, a 50:50 joint venture between LG Chem and state-owned Vietnam National Chemical Corp, commissions a 30 000 tonne/year DOP plant.

December – BP Chemical and Petronas show interest in a 350 000 tonne/year PE project downstream of a proposed cracker in Phu My.

Agrium, British Petroleum, Broken Hill Proprietary, Mitsui, Statoil, and Tonen say they will form consortium for a fertiliser project in Phu My.

PetroVietnam breaks ground for the Dung Quat refinery project.

1998

March – PetroVietnam says it will form a 50:50 joint venture with Russia’s Zarubezhneft for the Dung Quat refinery and PP projects.

April – LG Chem pulls out of the PP project linked to the No 1 refinery.

May – PetroVietnam signs an in-principle joint-venture agreement with Zarubezhneft.

June – Mitsui Vina Plastic and Chemicals commissions an 80 000 tonne/year PVC plant in Dong Nai.

1999

April – Australia’s BHP withdraws from a urea/power project in Phu My.

August – CNOOC and PetroVietnam conduct a joint feasibility study on a PE project.

September – Mitsubishi, Mitsui and Amoco pull out of the PP project linked to the No 1 refinery.

2000

January – PetroVietnam takes on Zaru­bezhneft as a partner for the PP project.

February – Marubeni pulls out of the PVC joint venture.

March –Work on the Dung Quat refinery starts officially.

April – PetroVietnam and Petronas agree to absorb Marubeni’s 30% stake in the PVC project. Petronas will hold a 50% stake, with PetroVietnam taking a 43% share and Tramatsuco a 7% stake in the joint-venture company, Phu My Plastics and Chemicals Co (PMPC).

October – PetroVietnam seeks investors for a polyester project.

2001

July – PetroVietnam and Tamilnadu Petroproducts Ltd (TPL) say they will form a joint venture for linear alkyl benzene (LAB) production.

July – PetroVietnam awaits bids from shortlisted consortia Technip, Technicas Reunidas, and JGC Corp, and Samsung Engineering and ABB Lummus Global for the No 1 refinery.

October – Mitsubishi says it will conduct a feasibility study on PetroVietnam’s No 2 refinery and petrochemicals complex.

2002

April – TPL withdraws from LAB joint venture because of delays in completing terms of investment with the government; PetroVietnam to go solo.

Consortium led by Technip wins the contract for the Dung Quat refinery.

August – Government approves pre-feasibility study for the No 2 refinery and petrochemicals project; PP project also approved.

December – Zarubezhneft withdraws from the No 1 refinery and PP projects; PetroVietnam says it will go solo.

2003

January – PMPC commissions a 100 000 tonne/year PVC plant.

2004

April – PetroVietnam submits a feasibility study on the No 2 refinery-petrochemicals project to the government.

2005

January – Technip submits proposal for the No 1 refinery for the third time.

PetroVietnam commissions a 740 000 tonne/year urea plant and a 425 000 tonne/year ammonia plant in Phu My.

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