Japanese-owned JGC Corp has won a bid to build a US$3.2-billion oil refinery in the central province of Phu Yen, online newspaper VnExpress has reported.
An engineering, procurement, and construction contract was signed October 6 between JGC and the UK'S Technostar Management, which plans to build the Vung Ro refinery.
The construction is expected to take 48 months, the newspaper said, but the start of the works depends on land acquisition and clearance, an unidentified official from the Phu Yen Department of Planning and Investment was quoted as saying.
Though local authorities are working to clear the project site, it is very unlikely that construction could begin this year, he said.
In the meantime, the authorities plan to seek financial support from the central government to build infrastructure like electricity network and roads in the area, he said.
Approved in 2007, the project was delayed for two years as a fallout of the economic slump, and its construction plans were revised in October 2012.
It was also allowed to double its capacity to eight million tons a year earlier this year, and investment to $1.7 billion.
According to the investor, Vung Ro will provide around 1,300 jobs and large volumes of petroleum products for the local market.
Vung Ro is one of two refineries that are underway in Vietnam, which now has only one -- Dung Quat, which produces around 6.5 million tons a year.
The Nghi Son Refinery with a capacity of 10 million tons is being built in the north-central province of Thanh Hoa.
Authorities are considering another plant that Thailand's PTT Pcl. energy company plans to build at a cost of $27 billion and with an annual capacity of nearly 30 million tons in the central province of Binh Dinh.
The government forecasts demand for petroleum products to reach 27 million tons per year by 2025.
Vietnam, a producer of crude oil, imports most of its fuel needs.
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