The long delayed construction of a USD250-million underground oil storage terminal in the Dung Quat zone in central Vietnam will push ahead in the third quarter, according to local media reports. Dung Quat is where Vietnam’s largest refinery is located.
A new joint development agreement has been signed between PetroVietnam Oil Stockpile (PVOS) and South Korean companies, including Korea National Oil Corporation (KNOC), LT Sambo, Koramco Asset Management and Korea Overseas Infrastructure & Urban Development Corp. (KIND), a state entity that supports overseas investment projects.
State-owned oil and gas company KNOC will be responsible for technological support, operation and management, while Koramco Asset Management is in charge of business development and financing.
LT Sambo will form a consortium with Pields Engineering, a South Korean petrochemical company, to participate in the design, procurement and construction, as well as technical support and equity investment. KIND will participate as a financial investor.
PVOS, a unit of Vietnam’s state-run oil and gas group PetroVietnam, was allowed to start building the storage facility with a total storage capacity of one million cubic meters in 2016, but construction has been delayed for various reasons, until now.