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PetroVietnam Nghi Son refinery construction to start in 2013

Vietnam Oil & Gas Group completed preparation work

PetroVietnam‘s Chairman , Mr Phung Dinh Thuc confirmed during a visit on the site of the Nghi Son refinery project that the preparation work was completed in October 2012 so that the construction could start in 2013.

The Nghi Son Refinery and Petrochemical LLC (NSRP) is a joint venture between Vietnam Oil and Gas Group (PetroVietnam), Kuwait Petroleum International (KPI), Idemitsu Kosan Co., Ltd. (Idemitsu), and Mitsui Chemicals Inc. (Mitsui) established in 2008 to build the Vietnam largest refinery and petrochemical complex in Vietnam.

Within the Nghi Son Refinery and Petrochemical joint venture, PetroVietnam and its partners share the working interests:

 – PetroVietnam 30%

 – Kuwait Petroleum International 35.1%

 – Idemitsu 35.1%

 – Mitsui 4.7%

Currently, Vietnam holds only one refinery, the Dung Quat refinery, with a capacity of 130,050 b/d covering only 35% of the domestic market.

The actual consumption of refined products is increasing in Vietnam by 6 to 8% so that the required capacity of production in 2020 should reach 600,000 b/d.

In this perspective and after several delays the Nghi Son Refinery project should add 200,000 b/d (10 million t/y) capacity by 2016.

With the petrochemical complex to be integrated in the refinery, the whole Nghi Son refinery and petrochemical project should require $8 billion capital expenditure.

Foster Wheeler completed FEED on Nghi Son refinery

Located close to the Hai Yen, Mai Lam and Tinh Hai Communes, in the Nghi Son Economic Zone (NSEZ) in the Thanh Hóa Province 215 kilometers south of Hanoi and about 80 km north of Vinh City (Nghe An Province), the Nghi Son Refinery project includes an:

 – Onshore part for the refining and petrochemical complex

 – Offshore infrastructure for the on and off loading of the vessels

The onshore part of the Nghi Son refinery project will cover 400 ha with 200,000 b/d of crude oil refining capacity to produce: 

 – 74,000 b/d of Diesel

 – 46,000 b/d of Gasoline and LPG

 – 12,000 b/d of Kerosen and Jetfuel

 – Fuel oil and bitumen

 – 400,000 t/y  of Polypropylene

 – 40,000 t/y of Purified terephthalic acid (PTA)

 – 300,000 t/y of Polyethylene terephthalate (PET)

 – 400,000 t/y of benzene and paraxylene 

The offshore part of the Nghi Son Refinery project will take 36ha in front of the refinery to integrate:

 – 35 kilometers crude oil import pipeline to connect the single point of mooring (SPM) of the tankers to the refinery

 – Two jetties of two berth each to export jet fuel, paraxylene, benzene, gasoline, LPG, sulphur and containerized Polypropylene

 – Product export pipelines system to link the refinery and petrochemical tank farms to the jetties

 – LPG dedicated export pipeline will supply an LPG tank on the jetty

 – Sulfur Forming and Storage unit with handling, weighting and shiploading facilities

Axens will supply the technology for the 

 – Residue Fluidized Catalytic Cracking (RFCC)

 – Prime-D Gas Oil desulfurization unit

 – Prime-K Kerozene desulfurization unit

Foster Wheeler completed the front end engineering and design (FEED)  and will supply the license for the delayed coker.

The engineering companies should start to work on the engineering, procurement and construction (EPC) contracts on first half 2013.

 The Japan Bank for International Cooperation provides 70% of the financing and Kuwait will supply 100% of the crude oil.

With this Nghi Son Refinery and Petrochemical complex project, will PetroVietnam increases its local production of refined products, Kuwait secures export of crude oil, Idemitsu and Mitsui find a unique opportunity of competitive labor costs and feedstock to produce petrochemical products in a region where the market is booming.

 For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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