PetroVietnam sets up biofuels firm, petrochemical complex

The Vietnam National Oil and Gas Group (PetroVietnam) is establishing a biofuel production and distribution company in the central province of Quang Ngai. The PetroVietnam Biofuel Joint Stock Company has a charter capital of 45 billion dong (US$2.7 million). It will produce ethanol to help the country reduce environmental pollution and limit its dependence on fossil fuels. The project is a part of the biofuel development program ratified by the government in 2007. The program aims to develop strategies for 2015 with a vision to produce renewable energy and the partial replacement of traditional fuels in 2025. As part of the program, around 250,000 tons of ethanol and vegetable oil will be produced to meet 1% of the country’s petroleum demand by 2015. Moreover, Vietnam authorities issued a license to a joint venture to build the first international-scale petrochemical complex, worth US$3.77 billion, in the southern province of Ba Ria-Vung Tau. The project will be built in the Long Son oil and gas industrial zone (IZ), according to Le Minh Chau, director of the provincial IZ management board. The parties in the joint venture include two state-run corporations – Vietnam National Oil and Gas Group (PetroVietnam) and Vietnam National Chemical Corporation (Vinachem) – and two subsidiaries of Thai Siam Cement Group (SCG) – Vina SCG Chemicals Co. Ltd. and Thai Plastic and Chemicals Public Co. Ltd. It will include an international-scale facility producing olefins with a capacity of 1.65 million tons per year. (July 23/August 11, 2008)