HA NOI (VNS)- Construction of Viet Nam's largest oil refinery complex is expected to start this quarter, says PetroVietnam's chairman Phung Dinh Thuc.
|Geologists check site conditions for the Nghi Son oil refinery project. The facility will be the country's largest refinery when completed. — VNA/VNS Photo Ha Thai
Preparation work for the construction is virtually completed and there are only a few details to be discussed among investors including PetroVietnam, Kuwait Petroleum International, Japan's Idemitsu Kosan Co and Mitsui Chemicals, Thuc added.
Total capital investment for the refinery project is worth nearly US$8 billion. It will be built in the central province of Thanh Hoa, 215km south of Ha Noi and will initially have a production capacity of 10 million tonnes per year.
Dung Quat refinery, built in the country's central coast to process 130,500 barrels per day of crude oil, is now Viet Nam's sole operating facility. Together with Dung Quat refinery, Nghi Son plant is expected to provide roughly 50 per cent of Viet Nam's gasoline demand, Vietnam Economic Times reports.
In another development, Petro Vietnam (PVN) said on Monday it had the Prime Minister's approval to become the sole agent to buy all investors' gas products and sell them to domestic consumers at one price nationwide.
According to PetroVietnam's chairman Phung Dinh Thuc, the selling gas prices for households power, nitrogenous and industrial productions varies. The price depends on location, gas production capacity and the investment capital of gas fields.
Gas prices in the east, including Nam Con Son and Cuu Long basins, are usually sold at cheaper prices than those offered in the west, including MP3 gas – Ca Mau. As a result, households often choose to buy gas from the east. This has led to a quick depletion at these fields while gas providers in the west face a supply surplus.
Viet Nam has planned for five other oil refineries, including Nghi Son. — VNS