MOSCOW (MRC) -- Vietnam is seeking to build its third oil refinery to meet domestic consumption demand as the country is facing a supply shortage and soaring energy prices, reported Reuters with reference to deputy prime minister, Le Van Thanh's statemet at a parliament meeting.
The plant, which is set to be located in the southern province of Vung Tau, has a design capacity of 10 MMm3 (3.5 MMtpy), Thanh said.
Vietnam's state oil firm PetroVietnam is drafting investment procedures, which it aims to complete by this October, he said.
Two refinery plants in Vietnam were put into operation in 2009 and 2018, according to the government, but both only meet around 70% of domestic demand.
With this new plant, Thanh said Vietnam's total capacity would reach 23 MMm3, which was expected to be enough for domestic use.
As MRC wrote before, Vietnam’s Nghi Son oil refinery officially began commercial production from 14 November 2018, following months of tests. The USD9 billion refinery is 35.1% owned by Japan’s Idemitsu Kosan Co, 35.1% - by Kuwait Petroleum, 25.1% - by PetroVietnam and 4.7% - by Mitsui Chemicals Inc.
We remind that a fire broke out at a steam turbine generator (STG) belongings to Nghi Son Refinery and Petrochemical (NSRP) in Vietnam on 21 February 2022, that forced the producer to take its 370,000 tons/year polypropylene (PP) unit offline.
According to MRC's ScanPlast report, PP shipments to the Russian market totalled 1,494.280 tonnes in 2021, up by 21% year on year. Deliveries of homopolymer PP and PP block copolymers increased, whreas.shipments of PP random copolymers decreased significantly.