Vietnam’s largest oil refinery begins commercial operations
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The Nghi Son Refinery began commercial operation Sunday, and is expected to meet about 40 percent of domestic petroleum demand in 2019.
Speaking at its inauguration, Prime Minister Nguyen Xuan Phuc emphasized the key role of the project.
The refinery will process 200,000 barrels of crude per day in the first phase, equivalent to 10 million tons a year, double the capacity of Dung Quat, Vietnam’s only other refinery, in the central Quang Ngai Province.
Situated in the Nghi Son Economic Zone, 200 km south of Hanoi in the central province of Thanh Hoa, Nghi Son is expected to hit 80 percent of capacity next year.
According to the Thanh Hoa People’s Committee, last June the refinery was already capable of 10 refined petroleum products such as liquefied petroleum gas, gasoline A92, A95, diesel oil, and kerosene.
As of December the plant has processed around five million tons of crude.
Nghi Son together with Dung Quat is expected to meet 80-90 percent of domestic petroleum demand, reducing Vietnam’s dependence on imports.
The $9 billion refinery is 35.1 percent owned by Japan’s Idemitsu Kosan Co, 35.1 percent by Kuwait Petroleum, 25.1 percent by state-run PetroVietnam and 4.7 percent by Mitsui Chemicals Inc.
Questions & Answers
Q.What is the expected capacity of the Nghi Son refinery once it reaches full operation?
What is the expected capacity of the Nghi Son refinery once it reaches full operation?
The Nghi Son refinery is designed to process 200,000 barrels of crude per day in its first phase. This is equivalent to 10 million tons a year, which is double the capacity of Vietnam's only other refinery.
Q.Which international companies are major stakeholders in the Nghi Son refinery project?
Which international companies are major stakeholders in the Nghi Son refinery project?
Japan's Idemitsu Kosan Co. And Kuwait Petroleum each own 35.1 percent of the refinery. Mitsui Chemicals Inc. Holds a 4.7 percent stake in the $9 billion project.
Q.How much of Vietnam's total domestic petroleum demand will Nghi Son meet in 2019?
How much of Vietnam's total domestic petroleum demand will Nghi Son meet in 2019?
In 2019, the Nghi Son refinery is expected to meet about 40 percent of Vietnam's domestic petroleum demand. This contribution will reduce the country's reliance on imports.
Q.What types of petroleum products is the Nghi Son refinery capable of producing?
What types of petroleum products is the Nghi Son refinery capable of producing?
The Nghi Son refinery is capable of producing at least 10 refined petroleum products. These include liquefied petroleum gas, gasoline A92 and A95, diesel oil, and kerosene.