Kuwait gets funding for $6.2bn Vietnam refinery

Kuwait Petroleum International chief says project will be ready to operate in 2015
Kuwait gets funding for $6.2bn Vietnam refinery
(Photo for illustrative purposes only)
By Andy Sambidge
Sat 01 Oct 2011 11:06 AM

Kuwait Petroleum International (KPI) will receive funding from the International Finance Corporation (IFC) to build Vietnam's second oil refinery, its chairman has said.

Hussein Ismail said in comments published by Kuwait's state news agency Kuna that building the $6.2bn Nghi Son oil refinery was part of Kuwait's strategy to invest in large-scale refining and petrochemicals projects in East Asia.

The refinery project is jointly supervised by KPI and PetroVietnam company with Japanese partners Idemitsu Kosan and Mitsui Petrochemical.

Ismail said the project was the second oil refinery planned in Vietnam and was located about 200km south of Hanoi.

He said the planned capacity of the plant would be 200,000 barrels per day. He gave no figure for the funding from the IFC.

The project is expected to be completed and ready for operation in 2015, he added.

The refinery project will also include a petrochemical complex, energy facilities, pipeline and storage systems, and an informatics system, Kuna said.

In addition to LPG, unleaded gasoline, kerosene, jet fuel, and diesel, the refinery is set to produce bitumen, propylene and BTX as a raw material for the petrochemical industry.

The refinery will be supplied with crude oil imports from Kuwait.

KPI, an international unit of Kuwait Petroleum Corporation (KPC), established the joint venture in April 2008 to build the refinery, which is designed to process Kuwaiti crude.

Investment in the refinery would total $7.5 billion, Vietnam's Prime Minister Nguyen Tan Dung said in January.

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