Vietnam, China to build separate energy projects in Cambodia

By Toan Dao   June 22, 2016 | 08:17 am GMT+7
PetroVietnam’s PV Oil is considering jointly investing in a condensate processing plant in Cambodia while a Chinese contractor has secured a deal to set up a refinery in the kingdom.

Natural-gas condensate, or simply condensate, is a low-density mixture of hydrocarbon liquids that are present as gaseous components in the raw natural gas produced from many natural gas fields

The $40- million project is expected to have capacity of 220 tons/year and will be invested by PV Oil Cambodia, a 51:49 joint venture between PV Oil and local Overseas Cambodia Investment Corp. (OCIC), according to PetroVietnam.

The condensate for the plant will be imported from Vietnam. Its products include gasoline RON 92, diesel and LPG, PetroVietnam said.

Part of Vietnam's Dung Quat refinery in Quang Ngai. Photo by VnExpress/Tri Tin

Part of Vietnam's Dung Quat refinery in Quang Ngai. Photo by VnExpress/Tri Tin

Vietnam’s government in March last year sent a letter asking Cambodian government to consider granting permission for the project. Three months later, Cambodian government allowed PV Oil Cambodia to conduct a feasibility study for the project and submit it within a year for approval.

PV Oil Cambodia is working with the Cambodian government for extension of the deadline for the FS as it is talks to secure condensate supply contracts with field owners in Vietnam. PV Oil has also not completed necessary procedures to transfer capital for the project from Vietnam to Cambodia, according to PetroVietnam.

Meanwhile, China National Petroleum Corp. (CNPC) Northeast Refining & Chemical Engineering Company on May 4 this year signed an engineering, procurement and construction (EPC) contract with Cambodian Petrochemical Company to build Cambodia’s first refinery in Preah Sihanouk province, Xinhua reported May 4.

The first phase of the project will cost $620 million. It will have capacity of two million tons/year and will be completed in end-2018. The capacity will be raised to 5 million tons/year in the next phases with total investment of $3 billion, Xinhua said, citing Hann Khieng, managing director of Cambodian Petrochemical Company, the investor of the project.

Cambodia imported 2.55 million tons of oil products in 2015, Xinhua said.

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