First foreign-owned refinery to break ground mid-2010

TN News

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Work on Vietnam's first wholly foreign-invested oil refinery will begin in the central province of Phu Yen in June or July, the provincial administration said.

The UK-based Technostar Management Ltd. and Russia-based Telloil would commence work on the US$1.7 billion refinery after a resettlement area for families living on the site was completed in May, said Le Kim Anh, vice chairman of the provincial People's Committee.

Vung Ro oil refinery is expected to churn out eight million tons of oil products per year. Its main products will include liquefied petroleum gas, gasoline, diesel oil, benzene and polypropylene.

The project will cover 200 hectares of land in Hoa Tam and Hoa Xuan Nam communes near the Vung Ro Port, in Dong Hoa Distrist. Half the area will be taken up by the refinery, 35 hectares by an oil products transportation port and the remaining area for supporting facilities.

Vung Ro is the country's fourth oil refinery project. The first one, Dung Quat plant in the central province of Quang Ngai, is currently in operation. The two others, Nghi Son plant in the northern province of Thanh Hoa is set to get off ground in June while the ground-breaking ceremony of the Long Son plant in the southern province of Ba Ria-Vung Tau is yet to be announced.

When all four oil refineries are fully operational, their combined output will total more than 24 million tons of oil products per year.

Vietnam's consumption of petrol and other oil products in 2010 is estimated at 16.3 million tons, with around 26 percent refined locally (by the Dung Quat plant), Vietnam News Agency's Tin Tuc Daily said in January.

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