Kuwait reiterates commitment to Vietnamese refinery
The Kuwaiti government reiterated its commitment to the joint venture with state-owned PetroVietnam and Japan’s Idemitsu Kosan and Mitsui Chemicals to build a US$6.2 billion refinery in Vietnam. Farouk Al-Zanki, CEO of state-owned Kuwait Petroleum Corporation (KPC), said that KPC will supply 100% of the crude oil requirements of the state-of-the-art refinery which will be built in the northern province of Thanh Hoa, south of Hanoi. The refinery is expected to have an oil processing capacity of 10 million tons per annum or 200,000 barrel per day (BPD) starting in 2015. Al-Zanki added, “The contract for engineering, procurement and construction (EPC) will be awarded once outstanding issues, including finance, are resolved.” When completed, the refinery will be the largest refinery in Vietnam, and will include a petrochemical complex, energy facilities, as well as pipeline and storage systems. It will produce LPG, gasoline, diesel fuel and jet fuel for domestic consumption. The refinery will also produce paraxylene, benzene and polypropylene for export to neighboring countries. KPC’s Kuwait Petroleum International (KPI) established the joint venture with PetroVietnam and Idemitsu Kosan and Mitsui Chemicals in April 2008. KPI and Idemitsu each own a 35.1% stake in the joint venture, while PetroVietnam has a 25.1 % stake and Mitsui Chemicals 4.7%. Vietnam is Southeast Asia’s third largest producer of crude oil, but it still relies on imported oil products, due to its limited refining capacity. The new refinery is expected to supply more than 30% of the country’s demand for petroleum products. (January 7, 2012)