11:31 | 26/07/2016 Industry
The People’s Committee of south-central Binh Dinh Province have decided to kill a multi-billion US dollar refinery project in the locality, aborting the country’s first petrochemical refinery project as well as the anxiety about its long-delayed implementation.
A view of Nhon Hoi Economic Zone in south-central Binh Dinh Province (Source: zing.vn)
This announcement was made by the provincial committee’s chairman Ho Quoc Dung at a meeting on July 22. Dung explained that the long delay in the project’s implementation after three years of registration for investment affected its feasibility as well as the province’s attractiveness to other investors.
The Nhon Hoi Oil Refinery and Petrochemical Complex, located in the Nhon Hoi Economic Zone in the locality, was to break ground this year and planned to be commissioned in 2021 with a capacity of 400,000 barrels of crude oil per day.
The project was initially estimated at nearly 29 billion USD in 2013 by Thailand’s state-owned oil and gas giant PTT, but was scaled down to nearly 22 billion USD in the feasibility plan. PTT and Saudi Arabian Oil Company each would contribute a 40 percent stake while a Vietnamese partner would contribute the remaining 20 percent.
It was designed to be the first petrochemical refinery complex in Vietnam and would contribute about 40 percent of Binh Dinh Province’s GDP.
Early this year, some foreign and local media reported Thai PTT decided to withdraw from the project due to difficulties caused by falling global oil prices.
In the July 22 meeting, Dung said the province will continue to promote other investment activities and will create favourable conditions for Japanese and European investors to land their investments here.
The local authority expects to draw investment projects in the Industry-Trade-Service-Urban Becamix-Binh Dinh Complex in Van Canh District.
In the meantime, the province is also calling for investments in other projects including the Japanese Yo Yo frozen aquatic processing plant, Vinh Loi Aquatic Industrial Complex and the Cat Khanh seafood processing zone./.