PTT Plc, Thailand's energy flagship, is considering building a world-scale refinery and petrochemical complex in Vietnam at a cost of US$28.7 billion to tap into high-potential petroleum demand.
The company on Thursday submitted a pre-feasibility study of a refinery with capacity of 660,000 barrels per day, which would make it one of the largest in the world, in the Nhon Hoi Economic Zone in coastal Binh Dinh province.
Construction would probably begin in 2016, and the refinery would become operational in 2019.
Such an investment would provide a much-needed boost for Vietnam, which global investors have increasingly shunned in recent years.
PTT has demonstrated it is "very willing" to undertake the project, "so we are confident it will be able" to carry it out, said Le Huu Loc, chairman of Binh Dinh's People's Committee.
Nattachart Charuchinda, the chief operating officer of PTT's downstream petroleum business group, yesterday confirmed the reports from Hanoi but noted that the project remains in a very preliminary stage.
"If we invest there, we want to make it with a big scale of production so that it has a competitive advantage," Mr Nattachart told the Bangkok Post.
"Vietnam has big potential, with only one refinery with daily capacity of 130,000 bpd in a population of 88 million," he said, adding that Thailand, with a smaller population, has several refineries.
Crude oil would be sourced from the Middle East. The complex would include an aromatics plant, with the output likely to be shipped to nearby China.
However, Mr Nattachart said more studies must be carried out, and given the huge investment, PTT may join other investors to develop the project.
"We don't know yet whether the Vietnamese government will decide to proceed with this," he said.
Mr Loc said PTT has approached several Vietnamese companies about partnership roles in its planned refinery. They include the state-run Vietnam Oil and Gas Group (PetroVietnam), Vietnam National Petroleum Corporation and Military Petroleum Corporation.
PetroVietnam this month said the company and partners had reached an agreement to proceed with Vietnam's long-delayed second refinery with capacity of 200,000 bpd. Production is expected to start in 2016.
Meanwhile, the Siam Cement Group and partners will build a $4.5-billion petrochemical complex in southern Vietnam's Ba Ria-Vung Tau province.
Shares of PTT closed yesterday on the Stock Exchange of Thailand at 312 baht, up 3 baht, in trade worth 897 million baht.
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Article source: http://www.thethailandlinks.com/2012/11/24/ptt-mulls-29bn-vn-complex/
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