Thai petroleum firm reduces investment in oil refinery

Thursday, Aug 14, 2014 17:44

PTT  invests a $20 billion oil refinery in Viet  Nam to tap the local potential.— Photo
HA NOI (Biz Hub) — The Petroleum Authority of Thailand (PTT) will reduce the investment capital for an oil refinery plant in the Nhon Hoi Economic Zone from US$27 billion to $20 billion.

According to on August 14, the revision will be included in the rescheduled feasibility study report that the group will submit to the Government of Viet Nam soon.

The capacity of the plant will be reduced from 660,000 barrels to 400,000 barrels of oil per day.

PTT told local media that the investment capital and capacity of the plant were reduced for a better fit with the Vietnamese Government's oil refinery development plan, which is focused on the northern and central parts of the country.

Meanwhile, Thailand's quoted Saran Rangkasiri, PTT's chief operating officer for downstream petroleum products, as saying that once the project is approved by the Vietnamese Government, the construction of the Nhon Hoi Oil Refinery is expected to start in 2016 and be completed in seven years.

Saran said PTT would sell half of its products in the Vietnamese market, while the remainder will be exported.

Currently, Viet Nam's sole oil refinery Dung Quat, in the central province of Quang Ngai, produces 130,000 barrels per day. The Dung Quat plant started commercial production in 2009 and meets one-third of the domestic demand. — VNS

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