Nghi Son Refinery and Petrochemical LLC (NSRP) has produced approximately 4.6 million tonnes of petroleum fuel products in its first year, meeting around 33 per cent of Vietnam’s fuel demand. Up to November 2019, NSRP has contributed over VND11.66 trillion ($506.96 million) to the state budget.
|The Nghi Son Refinery and Petrochemical complex celebrates one year of successful operation |
NSRP recently celebrated the first anniversary of starting commercial operations at its refinery located at Nghi Son Economic Zone in Thanh Hoa province.
In its first year, the refinery has processed more than 7.1 million tonnes of crude oil from Kuwait to produce around 4.6 million tonnes of high-quality petroleum fuel products. It is estimated that NSRP meets around 33 per cent of Vietnam’s growing domestic fuel demand, significantly reducing the nation’s reliance on foreign petroleum imports and providing a secure supply of energy for the Vietnamese economy.
“NSRP has come a long way since its inception, so this anniversary marking one year of commercial operation represents a major achievement for Vietnam, the people of Thanh Hoa province, and all of those involved in the financing, development, construction, and commercial operation of the facility. Much has been achieved in our first 12 months, the company has been operating at full capacity the majority of the time and has driven improvements in operational efficiency and performance through the year. NSRP is performing as a world-class refinery and petrochemical complex that Vietnam can be proud of and I am confident that it will continue to make a meaningful contribution to the country’s social and economic development for many years to come,” said Atsushi Yamamoto, general director of NSRP.
Since it began commercial operation, NSRP has contributed over VND11.66 trillion ($506.96 million) to the state budget by November 2019 and made significant positive social and economic contributions to Thanh Hoa province through job creation, skills transfer, and strategic social investments within affected local communities in areas including healthcare, education, and small business incubation.
With the total investment capital of over $9 billion, the refinery is the largest foreign direct investment and infrastructure construction project in Vietnam and a vital piece of the nation’s energy infrastructure, using the largest project financing in Southeast Asia since the Asian currency crisis.
The refinery is owned by NSRP, a joint venture company established in April 2008, with PetroVietnam, Kuwait Petroleum Europe B.V. (KPE), Idemitsu Kosan Co., Ltd. (IKC), and Mitsui Chemicals Inc. (MCI) as its sponsors, to develop, construct, and operate the refinery.
The Vietnamese economy is expected to grow by 8 per cent per year for the next decade, according to the World Bank. To support this growth, Vietnam needs to develop secure and reliable energy sources and attract responsible, long-term foreign investment into energy generation and petroleum production projects.
“The NSRP refinery is a result of successful international co-operation between Vietnam, Kuwait, and Japan and highlights the benefits responsible, ethical, and long-term foreign investment can bring to Vietnam. At NSRP, we are committed to being a responsible corporate citizen and aim to deliver a positive social and economic impact to local communities in Thanh Hoa province. The company currently employees more than 1,000 people, the majority of whom are from Thanh Hoa province, and seeks to play an active and positive role in the communities surrounding the refinery,” said Yamamoto.