Phu Quoc Island.— File Photo

HA NOI (Biz Hub) — The Viet Nam Oil and Gas Group (PetroVietnam) has received approval from Kien Giang authorities to conduct a survey for the construction of a bonded warehouse for a fuel and logistics port system.

The People's Committee of Kien Giang Province said construction will be carried out on Phu Quoc Island.

It said, the project, which is expected to supply and distribute fuel for wholesalers in Kien Giang Province and neighbouring localities, is estimated to cost some VND500 billion (US$23.4 million), which would be sourced from PetroVietnam's equity and bank loans.

The warehouse and the port system would operate as a gateway for temporarily importing and re-exporting fuel to Southeast Asia and other parts of the world.

The warehouse would be able to store up to 100,000 cubic metres of fuel, while the port system would include an import port, which can handle cargo ships of at least 30,000 deadweight tonnage (DWT), and an export port for ships of no more than 15,000DWT.

PetroVietnam is expected to start work on the project this year if related procedures are completed as soon as expected. The firm plans to complete the project within two years.

The People's Committee of Kien Giang Province said it would further consult relevant ministries and agencies over the project's impact on provincial environment and tourism. — VNS