25 January 2013 10:47 [Source: ICB]
Construction of a new $9bn (€6.75bn) refinery and petrochemical complex in Nghi Son, Vietnam, will start in the second quarter of this year, said a spokesperson at Japan's Mitsui Chemicals, which has a 4.7% stake in the project.
"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."
The project is expected to have a 200,000 bbl/day refining capacity and will produce 500,000 tonnes/year of liquefied petroleum gas (LPG), the spokesperson added.
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, said Japan's 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)," it said.
The engineering, procurement and construction contract for the project was awarded to a consortium made up of JGC and Chiyoda (Japan), Technip Group (France/Malaysia) and SK Group and GS Group (South Korea).
Other stakeholders are Kuwait Petroleum (35.1%) and state-owned PetroVietnam (25.1%).
"The 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 [Mitsui Chemicals] to capture rapidly growing demand for petroleum products in Vietnam, while also responding to the expanding global markets for aromatics and polypropylene products, which are expected to continue to be high-growth," Mitsui Chemicals said.
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