The PetroVietnam Trading Corporation, more commonly known as Petechim,
has signed a contract with state-run PetroVietnam to supply the latter's maiden Dung Quat refinery with 6.5 million mt/year of crude when the plant goes into operation in 2009, the Vietnam News Agency reported January 24.
The Dung Quat refinery, in the central
, will have a nameplate capacity of 6.5 million mt/year (around 130,000 b/d) and will meet 30% of domestic demand. provinceof Quang Ngai
The refinery will use local Bach Ho crude for the first five to seven years after which it would use a combination of Bach Ho and
crude in a 85:15 ratio, according to PetroVietnam, which owns 100% of the project. Dubai
The refinery will mainly produce gasoline (41%) and gasoil (40%)
compliant with Euro II emission standards.
PetroVietnam has also signed preliminary deals with Dutch trader
Trafigura and Swiss-based oil trader Glencore to meet long-term domestic needs for crude oil.
From being a crude oil exporter,
is going to turn into a net importer with several refinery projects in the pipeline. Vietnam
PetroVietnam is planning a second refinery project in Nghi Son in the
of Thanh Hoa. This plant will have a a nameplate capacity of 7 million-8.4 million mt/year and is targeted to begin operations before 2015. northern province
The refinery will process 100% sour
Separately, PetroVietnam is working with
's PDVSA on a detailed feasibility study for a third refinery project. This refinery, to be located either at Long Son or Ba Ria in the southern Venezuela , is expected to have a nameplate capacity of 10 million mt/year and is also targeted to begin operations by 2015. It will process 100% Venezuelan crude. provinceof Vung Tau
--Mriganka Jaipuriyar, email@example.com