Nghi Son Refinery and Petrochemical, Vietnam’s second oil refinery, will be ready for start-up by February 28, according to parent Vietnam Oil and Gas Group (PetroVietnam).
The oil refinery, which is co-owned by Kuwait Petroleum Europe BV and Japan’s Idemitsu Kosan and Mitsui Chemicals, is valued at USD 9 billion.
Nghi Son will process crude oil from Kuwait to produce liquefied petroleum gas, gasoline, diesel fuel, kerosene and jet fuel.
Vietnam’s first refinery in Dung Quat supplies only 30% of the country’s total domestic fuel demand. Together with the Dung Quat oil refinery, the 200,000 barrel-per-day (bpd) Nghi Son refinery will be able to supply 80% of Vietnam’s petroleum product demand.
Operations at Nghi Son, in Thanh Hoa province, had been delayed but are now expected to begin commercial production of paraxylene starting in April and gasoline and diesel fuel in May, Reuters reported.
Kuwait Petroleum International and Idemitsu Kosan each own 35.1%, while PetroVietnam owns 25.1% and Mitsui Chemicals 4.7%.