15 January 2013 11:38 [Source: ICIS news]
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SINGAPORE (ICIS)--Construction of Vietnam’s new $9bn (€6.75bn) refinery and petrochemical complex in Nghi Son will start in the second quarter of the year, a spokesperson of Japan’s Mitsui Chemicals, which has a 4.7% stake in the project, said on Tuesday.
“We plan to construct in the second quarter of 2013 and construction completion is in the third quarter in 2016,” the spokesperson said.
“Commercial operation will be in the second quarter of 2017,” he added.
The project is expected to have a 200,000 bbl/day refining capacity and will produce 500,000 tonnes/year of liquefied petroleum gas, the Mitsui Chemicals spokesperson said.
Petrochemical production at the site will include 700,000 tonnes/year of paraxylene (PX), 240,000 tonnes/year of benzene and 370,000 tonnes/year of polypropylene (PP), he said.
The $9bn project cost includes working capital and financing costs, according to Idemitsu Kosan, which owns 35.1% of the project, in a separate statement.
“Plans call for raising funds on a project finance basis (co-financing arrangement with international commercial banks with a target amount of $5bn),” Idemitsu Kosan said.
The engineering, procurement and construction (EPC) contract for the project was awarded to a consortium consisting of JGC Corp (Japan), Chiyoda Corp (Japan), Technip Group (France/Malaysia), SK Group (Korea), and GS Group (Korea), Mitsui Chemicals and Idemitsu Kosan said.
Other stakeholders in the project are Kuwait Petroleum (35.1%) and state-owned Petro Vietnam (25.1%).
“The [Nghi Son] Project, which has at its base the stable supply of crude oil from Kuwait, will fully employ construction and operation technology of both Idemitsu and MCI [Mitsui Chemicals] to capture rapidly growing demand for petroleum products in Vietnam, while also responding to the expanding global markets for aromatics (paraxylene and benzene) and polypropylene products, which are expected to continue to be high growth markets,” Mitsui Chemicals said.
“The large scale project is forecasted to yield high returns,” it added.
($1 = €0.75)
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