Representatives of PVFCCo, UBE and Sojitz sign memorandum of understanding of co-operation in HCM City. — File Photo

HCM CITY (Biz Hub) — PetroVietnam Fertiliser and Chemicals Corporation (PVFCCo) will team up with Japan's UBE Industries Ltd, and Sojitz Corporation to study opportunities for investing and building an ammonia plant and derivatives from gas resources in Viet Nam's south-eastern region.

Under a memorandum of understanding signed in HCM City on August 19, the participants will conduct a pre-feasibility study for the ammonia project, which is expected to have a daily capacity of between 1,500 and 2,000 tonnes, as well as the possibility of processing derivatives from ammonia and carbon dioxide.

The study will be carried out within six months. It is part of the PVFCCo's long-term development strategy to become a leading business in the field of fertilizers and chemicals in Viet Nam and the Southeast Asia region.

The ammonia plant is hoped to meet the increasing demand for ammonia in the production of DAP and AS fertilizers, rubber and oil chemical products.

PVFCCo has been effectively operating the Phu My Fertiliser Plant since 2004.

UBE is a diversified manufacturer with a core focus in the chemicals sector. It has ammonia and caprolactam factories in Japan, Spain and Thailand. The company is not only an investor but also a consumer of ammonia.

Meanwhile, Sojitz, a Japanese diversified company covering production and trade of chemicals, has been in the Vietnamese market for a long time. It has been co-operating with the Vietnam Oil and Gas Group in studying projects on gas processing, including a study on using gas from the Ca Voi Xanh (Blue Whale) oilfield to produce methanol and derivatives.

If the project turns into reality, PVFCCo is expected to double its production scale and market share, while UBE and Sojitz will have the opportunity to further expand their market share in special-purpose chemicals in Việt Nam and the region. — VNS