Nghi Son oil complex finishes land clearance

These were considered the most important pending tasks to ensure the project stays on schedule.

According to a source from the state-run PetroVietnam, one of the consortium investors, the last pieces of land were successfully cleared thanks to close co-operation between the consortium and local authorities.

The project consists of a refinery, pipeline, port and transport system and many other supporting facilities.

More than 3,790 families located in Tinh Gia district of Thanh Hoa province were relocated to make room for the project.

Nghi Son is considered one of Vietnam’s key national projects and with a total $9 billion investment is the second biggest foreign-invested project in the country, after the Formosa steel, port and power complex project.

The project’s engineering, procurement and construction (EPC) contract was signed back in 2011 and is being carried out by a consortium of JGC Corporation and Chiyoda from Japan, Korea’s GS Engineering & Construction Company, France’s Technip France and Technip Geoproduction from Malaysia.

According to PetroVietnam, the project will source $5 billion in financing from international funds and the remainder from the project partners.

The complex is owned by a joint venture between PetroVietnam (25.1 per cent), Kuwait Petroleum International (35.1 per cent), Japan’s Idemitsu Kosan (35.1 per cent) and Mitsui Chemicals (4.7 per cent).

It will have a capacity of 10 million tonnes of crude oil per year, or 200,000 barrels a day, 1.5 times that of the already operational Dung Quat oil refinery.

The project will feature a main refinery and petrochemical complex supplied by an onshore pipeline from the plant to jetties and a harbour.

Offshore installations include a main breakwater, access channel, turning basin, intake channels, a crude oil pipeline and mooring.

It will also include berths for white product, LPG, sulphur, polypropylene shipments and a service vessel facility.

Started in October 2013, Nghi Son Petrochemical complex is expected to commence operations in 2017.