Vietnam to double refining capacity
Vietnam will more than double its refining capacity in the next four years with construction having started on October 23 for a second plant, as rapid economic expansion in the country boosts fuel demand.
The 200,000 barrels per day (bpd) Nghi Son facility will increase the country’s oil processing capacity to 330,500 bpd by 2017, but it and a smaller older plant will only be able to meet half of the nation’s fuel demand by then, according to PetroVietnam, the state oil and gas group, Reuters reported.
That will ensure Vietnam remains a steady importer of oil products, helping keep regional fuel prices supported. In addition, the refinery will also have a petrochemicals plant, which will soak up some of the output, leaving less volumes of fuels such as gasoline for sale in the local market.
Vietnam’s economic growth is expected to accelerate to 5.4 per cent this year and is targeted to quicken further in 2014, Prime Minister Nguyen Tan Dung said.
Construction of the plant, to be located about 180 kilometers south of Hanoi, is commencing with a groundbreaking on Wednesday. The facility is owned by Japan’s Idemitsu Kosan, Mitsui Chemicals, PetroVietnam and Kuwait Petroleum International.
Vietnam used to be completely dependent on oil products imports until its sole refinery came onstream in early 2009. For the first nine months of 2013, its oil products imports had fallen 23 per cent to 5.58 million tonnes from the same period a year ago due to full runs at the 130,500 bpd Dung Quat plant, government statistics showed.
Total oil products demand this year is estimated to reach up to 17 million tonnes, 60 per cent of which will be met via imports, based on an Industry and Trade Ministry forecast.
Vietnam will more than double its refining capacity in the next four years with construction having started on October 23 for a second plant, as rapid economic expansion in the country boosts fuel demand. The 200,000 barrels per day (bpd) Nghi Son facility will increase the country's oil processing capacity to 330,500 bpd by 2017, but it and a smaller older plant will only be able to meet half of the nation's fuel demand by then, according to PetroVietnam, the state oil and gas group, Reuters reported. That will ensure Vietnam remains a steady importer of oil products, helping keep...
Vietnam will more than double its refining capacity in the next four years with construction having started on October 23 for a second plant, as rapid economic expansion in the country boosts fuel demand.
The 200,000 barrels per day (bpd) Nghi Son facility will increase the country’s oil processing capacity to 330,500 bpd by 2017, but it and a smaller older plant will only be able to meet half of the nation’s fuel demand by then, according to PetroVietnam, the state oil and gas group, Reuters reported.
That will ensure Vietnam remains a steady importer of oil products, helping keep regional fuel prices supported. In addition, the refinery will also have a petrochemicals plant, which will soak up some of the output, leaving less volumes of fuels such as gasoline for sale in the local market.
Vietnam’s economic growth is expected to accelerate to 5.4 per cent this year and is targeted to quicken further in 2014, Prime Minister Nguyen Tan Dung said.
Construction of the plant, to be located about 180 kilometers south of Hanoi, is commencing with a groundbreaking on Wednesday. The facility is owned by Japan’s Idemitsu Kosan, Mitsui Chemicals, PetroVietnam and Kuwait Petroleum International.
Vietnam used to be completely dependent on oil products imports until its sole refinery came onstream in early 2009. For the first nine months of 2013, its oil products imports had fallen 23 per cent to 5.58 million tonnes from the same period a year ago due to full runs at the 130,500 bpd Dung Quat plant, government statistics showed.
Total oil products demand this year is estimated to reach up to 17 million tonnes, 60 per cent of which will be met via imports, based on an Industry and Trade Ministry forecast.
