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U.K-Russia JV to Start $3.2B Oil Refinery Project in Central Vietnam in mid-Aug

U.K-Russia JV to Start $3.2B Oil Refinery Project in Central Vietnam in mid-Aug - 

Vung Ro Petroleum Ltd. Co., a joint venture between the U.K.’s Technostar Management Limited and Russia’s Telloil Group, will start the construction of its $3.2-billion oil refinery project in Vietnam’s central coastal province of Phu Yen in mid-August.

450ha of the area is dedicated to the construction of the Vung Ro oil refinery.

The project will cover 550 hectares of land and 500 ha of water surface in Hoa Tam commune of Dong Hoa district, 300 km from the south of Vietnam’s first oil refinery Dung Quat in Quang Ngai province.

Around 450ha of the area is dedicated to the construction of the Vung Ro oil refinery.

Authorities of Phu Yen province have handed more than 134 ha of land at Bai Goc port to Vung Ro Petroleum Ltd, said Pham Dinh Cu, chairman of the provincial People’s Committee.

“The remaining land will be cleared soon so that the investor can start the project,” Mr. Cu told local newswire VnExpress on June 6.

The construction of the project will last for 48 months. Once being put into operation, the refinery will produce eight million tons of petroleum products for domestic consumption and contribute nearly $111 million to the state budget per year. It is likely to provide jobs for 1,300 laborers.

The central coastal region of Vietnam has attracted billions of U.S. dollar worth of foreign investment in oil refinery projects.

Last week, the People’s Committee of Binh Dinh province met Thailand’s top energy firm PTT to discuss on Nhon Hoi oil refinery project. The Thai investor is expected to invest $27 billion in the project which has a designed full capacity of 30 million tons of fuels a year.

Along with Dung Quat oil refinery in Quang Ngai province and $9-billion Nghi Son oil refinery in Thanh Hoa province, the constructions of these projects will contribute to shaping oil refinery industry in Vietnam.

Experts, however, have raised concerns about the fact, saying that if all the refineries with a combined capacity of 36 million tons a year go on stream in 2020, there is likely an oversupply of fuels in the domestic market as demand is estimated at 29 million tons. The surplus will rise to 11 million tons by 2025, they warned.

Now Vietnam gets around a third of its supply from the 6.5-million-ton Dung Quat refinery and imports the rest.

Vietnamenergy.vn

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