Binh Dinh refinery plan wins support

May 13, 2013 | 14:58

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The Ministry of Industry and Trade is behind a mammoth Thai-backed, oil refinery and petrochemical project in Binh Dinh province despite PetroVietnam’s protests.

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“We have just one oil refinery at this time, so calling for new investors for new project is necessary. The Ministry of Industry and Trade (MoIT) supports this project,” said Ho Thi Kim Thoa, MoIT Vice Minister.

She said that the $28 billion PTT Public Company project was just in the pre-feasibility study stage.

Three months ago, PTT had a meeting with the MoIT and Binh Dinh People’s Committee to propose its detailed investment plan, amid doubts the project was feasible.

According to Binh Dinh People’s Committee, the project would have total refining capacity of 660,000 barrels per day, or 33.6 million tonnes of crude oil per year. If the project is approved, it would be one of the largest oil refinery and petrochemical complexes in Asia.

State-run PetroVietnam recently expressed concerns about the complex as the Thai firm’s plan had not comprehensively evaluated some essential criteria such as the availability of a stable and long-term crude oil for the future complex, details of the partners who will be involved in this project and capital arrangements.

Binh Dinh People’s Committee chairman Le Huu Loc said he believed the project was feasible. “Within this month or early next month PTT will officially answer hanging questions of the government over the feasibility of the project,” Loc said.

Loc said PTT had announced intentions to borrow 60 per cent of total investment cost from banks, while it can arrange 40 per cent itself. In addition, both PTT and Binh Dinh People’s Committee invited Thailand’s SCG Group to be involve in the project. Loc said SCG Group promised to study this proposal.

By By Ninh Kieu

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