MOSCOW (MRC) -- Kuwaiti Deputy Prime Minister and Minister of Oil Mustafa Al-Shimali and Vietnamese Prime Minister Nguyen Tan Dung agreed to smoothly execute a joint refinery and petrochemical project and confirmed the two governments' strong commitments to strengthening bilateral ties, as per Plastemart.
While thanking the Vietnamese government for creating favourable conditions for the project by supporting essential requirement to facilitate the Nghi Son Refinery and petrochemical project between Kuwait, Vietnam and Japan, Al-Shimali renewed Kuwait's commitment to supplying 100% crude oil in the long term for the vital joint venture.
The petrochem project involves Kuwait, Vietnam and Japan, with state-run Kuwait Petroleum Corporation (KPC) set to supply all of its feedstock requirements.
As MRC informed earlier, this summer, Mitsui Chemicals, Idemitsu Kosan, Kuwait Petroleum International, and Petro Vietnam announced the final decision to invest a total USD9 billion in their refinery and petrochemical complex construction project at Nghi Son economic zone, Thanh Hoa Province, Vietnam. This final decision on project investment and financing agreements will allow construction to start in July. Construction is scheduled for completion in 2016. The plant, to be located in 180 km south of Hanoi, is expected to start commercial operations in 2017 with a refining capacity of 200,000 bpd, equivalent to 10 mln tpa.
This project, which has at its base the stable supply of crude oil from Kuwait, will capture rapidly growing demand for petroleum products in Vietnam while also responding to forecasted expanding aromatic (paraxylene and benezene) markets and export sales of polypropylene products. The large-scaled project is expected to yield high returns.
Idemitsu Kosan and Kuwait Petroleum International each hold a 35.1% stake in the planned refinery, while PetroVietnam and Mitsui Chemicals own 25.1% and 4.7%, respectively. KPI is a unit of state-owned Kuwait Petroleum.