Vung Ro Petroleum Company yesterday broke ground of Bai Goc seaport – part of an oil refinery and petrochemical complex – in Phu Yen province, beginning the construction of Vietnam’s third oil refinery and petrochemical complex.
Bai Goc seaport consists of small liquid bulk berths accommodating vessels up to 15,000 deadweight tonnage (DWT), large liquid berths accommodating vessels up to 54,000 DWT, a general cargo berth and a provincial port that is expected to accommodate general cargo vessels in the range of 1,000-30,000 DWT and container vessels in the range of 30,000-50,000 DWT.
According to Vung Ro Petroleum, the seaport can handle around 17 million tonnes a year, including products from the refinery and other oil products for trading. Additionally, the general cargo berths have total throughput capacity of up to five million tonnes.
“Marine facilities are vital to the effective running of a refinery complex. These facilities will be designed to ensure the efficient and economic receipt of crude oil, and to guarantee that products can be shipped quickly to optimise the refinery’s operational efficiency,” the company said in a statement.
Vung Ro Petroleum, a subsidiary of UK-based Technostar Management Limited Company, plans to pump $3.2 billion into the oil refinery and petrochemical complex in Hoa Tam Industrial Park, Phu Yen province.
Located in the Hoa Tam Industrial Park, Vung Ro oil refinery and petrochemical complex is planned to be the driving force of industrial development while maintaining stringent environmental practices. The refinery is well positioned to meet the fast growing demand for high-quality fuel and petrochemical products in Vietnam and the wider region, and is hoped to be a strategic base for business expansion in the region.
To prepare for construction, last October the company signed an engineering, procurement and construction (EPC) contract with Japan’s JGC Corporation, which is also participating in the construction of the $9 billion Nghi Son oil refinery and petrochemical project in Thanh Hoa province.
Prior to the EPC contract, the investor signed a technology transfer agreement with Honeywell’s UOP, a leading international supplier and licensor for petroleum refining and petrochemical production.