Petrochemical Industry

Vietnam’s first oil refinery Dung Quat Refinery has been completed and become operational during 2009.

In July 2008 UK-based Foster Wheeler Energy Limited announced that it had been awarded the front end engineering and design (FEED) contract for the planned Nghi Son Refinery & Petrochemical Complex. The FEED work was completed during the fourth quarter of 2009. Now, the EPC contractor is being selected.

The investment cost for the complex which includes a refinery producing up to 10mtpa of crude along with petrochemical capacity has been put at $6.2bn.

It is anticipated that once operational, the two refineries would allow Vietnam to meet 50% of domestic demand for oil products. In addition, the Dung Quat and Nghi Son projects would contribute to the development of petrochemical Industry in Vietnam.

On March 19, 2008, SCG—through its VSCG Chem subsidiary—entered into a joint venture agreement with PetroVietnam, Vinachem, and Thai Plastic and Chemicals Public Company Limited (TPC) to build Vietnam’s first world-scale petrochemicals complex. SCG expects to own a 71% stake in the venture, with the partners holding the remaining 29%.

The new petrochemicals complex, which is expected to cost $3.5-4 billion, will be located on Long Son Island in Vietnam’s southern province of Ba Ria Vung Tau. It will be located near a $10 billion oil refinery also planned for the area.

The facility will comprise a naphtha-based cracker with an olefins capacity of 1.65 million tons, a polyolefins plant with a capacity of 1.45 million tons, a 280,000-ton-capacity chlor-alkali unit, and a PVC plant with production capacities of 330,000 tons of EDC and 400,000 tons of VCM. The complex will also include infrastructure such as port and storage facilities as well as utilities. Products from the facility will include the following products for the Vietnamese market: HDPE, LDPE, PE, PP, and PVC.

In September 2009, Taiwan’s Formosa Heavy Industries received an approval from the government to build a US$12.47bn petrochemical and oil refinery project in Vung Ang Economic Zone. The project is to have capacity of 300,000b/d of oil and 16mn tpa of petrochemicals. The company is constructing a US$7.9bn steel project in the same zone.

In anticipation for the development of Vietnam emerging petrochemical industry, Haison is working with our partners in Vietnam to prepare for the opportunities that will arise.