Proposal to invest in an oil refinery complex and Vietnam's national crude oil and petroleum storage depot
11:47 | 18/08/2022
Therefore, the Vietnam Oil and Gas Group (PVN) sent a proposal to the Government for an opportunity to invest in the Refinery Complex and National depot for the crude oil and petroleum products in Long Son Petroleum Industrial Park.
According to PVN calculation, the petroleum demand of the domestic market was 18 million tons in 2020, will be about 25 million tons in 2025 and 33 million tons in 2030, and continue to increase in the following period, while the current domestic suppliers including Dung Quat and Nghi Son Refineries and Condensate processing factories provide about 12.2 million tons and expect to 13.5 million tons after Dung Quat Refinery extending. So Vietnam will lack petroleum products up to 19.5 million tons by 2030, 25 million tons by 2035, and 49 million tons by 2045.
Regarding the Southern Refinery complex with 100% investment of Thai land SCG that will be put into operation soon and Hyosung Refinery expects to be in operation in 2022-2023 with 0.96 million tons of PP and 0.95 million tons of PE per year.
So, petroleum products of the domestic suppliers only satisfy only 70% of demand at the current time, 40% in 2030, and 20% in 2045 and our country has to pay billions of US$ per year to import petroleum products for domestic demand.
PVN considered the Refinery Complex and National Depot would better be developed in Southern Region (Long Son Petroleum Industrial Park).
The project is divided to two phases: 1) Refinery with a capacity of 12-13 million tons of crude oil per year putting 0.66 million tons of condensate, LPG, and Ethane per year, 7-9 million tons of gasoline and 2-3 million tons of petrochemical per year 2) Crude oil and petroleum product depot. In this phase, supplementing increase of 3-5 million tons of gasoline per year and producing 5.5-7.5 million tons of petrochemical per year. The National crude oil and petroleum product Depot will have a capacity of 1.0 million tons of crude oil and provide 500,000 cubic meters of gasoline per year.
In PVN estimate, the investment capital of phase 1 is 12.5 -13.5 billion US$, and Phase 2 is 4.5-4.8 billion US$.