Experts support USD27-billion oil refinery project

Tien Phong, dtinews

Economists and authorities of Binh Dinh Province have supported the implementation of a USD27-billion oil refinery and petrochemical project despite strong opposition from PetroVietnam.

 

 

PTT Public Company Limited (PTT) will carry out the project on a 2,000-ha site. The plant is expected to produce 660,000 crude oil barrels per day. Forty five percent of the plant’s crude oil will be imported from the Middle East, 25% from Africa and 35% from South and Central America.

Dr. Nguyen Minh Phong said it was important to prioritise the national interests. If PTT could ensure technical and financial capacity, they should be given approval.

Economist Pham Chi Lan said the most important thing whether PTT was qualified enough for the project implementation and the project could benefit the nation.

The Ministry of Finance has asked PTT to prove its financial capacity to invest in the project when it would have to get a loan of between USD14 billion and USD17 billion for the project.

Tran Ngoc Nam, Deputy General Director of Vietnam National Petroleum Group (Petrolimex), said it was very difficult to say whether the PTT’s project was feasible or not due to a lack of information.

He added that the Nhon Hoi Oil Refinery and petrochemical plant were very near to Petrolimex’s Nam Van Phong refinery project in Khanh Hoa, but it was necessary to consider the purpose of the PTT’s project. In reality, in Singapore, many refinery plants were located near one another, however, it was no problem because most of them exported products, he noted.

Head of Nhon Hoi Economic Zone’s Management Board Man Ngoc Ly said PTT had finished their pre-feasibility study, while Binh Dinh planned to lease around 2,000ha of land at just USD10-15 per square metre for the investor.

According to Mr. Ly, the project was suitable for the provincial industrial development planning; therefore, it would not affect other surrounding projects in the long term.

Meanwhile, Vietnam Oil and Gas Group (PetroVietnam) said that the ministry should not approve the project in order to avoid an imbalance in the domestic oil and gas market. The country’s gas sector’s development planning by 2015 excludes the proposed plant.

 

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