Vietnam's $9-billion oil refinery set back by four-month delay

By Toan Dao   June 21, 2016 | 11:04 pm PT
Vietnam's $9-billion Nghi Son refinery, which is under construction, is likely to start up four months later than previously planned, a Vietnamese government statement cited state-owned PetroVietnam as saying on June 21.

PetroVietnam has a 25.1 percent stake in the refinery while both Kuwait Petroleum International and Japan's Idemitsu Kosan own 35.1 percent each. Japan's Mitsui Chemicals holds the remaining 4.7 percent stake.

Vietnam’s Deputy Prime Minister Trinh Dinh Dung held a meeting with relevant ministries and PetroVietnam on Tuesday to look at ways to push the construction progress of the project. PetroVietnam said that slow progress on some parts of the project might lead to a four-month delay, the statement said.

Part of Nghi Son refinery in Thanh Hoa Province. Photo by VnExpress/Le Hoang

Part of the Nghi Son refinery in Thanh Hoa Province. Photo by VnExpress/Le Hoang

Nghi Son was previously scheduled for mechanical completion in November this year and commercial operations in July 2017, according to the statement.

Although no new deadline was provided, Nghi Son will likely open in the fourth quarter of next year.

Japan's Idemitsu Kosan Co. Ltd said in April this year it had applied to set up a 50:50 joint venture company with Kuwait Petroleum International Ltd aimed at distributing petroleum products from the refinery.

Vietnam’s 130,000 barrels per day Dung Quat refinery meets more than 30 percent of domestic oil product demand, while the rest is imported.

Related news:

> Vietnam’s second $9 billion refinery on track to open in Q3 2017

> Vietnam’s sole oil refinery imports crude oil first time in nine months

> Vietnam to hire consultant for $1.8-billion refinery expansion

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