(MENAFN- Qatar News Agency) Start of construction Wednesday at the site of the Nghi Son Petrochemical Refinery Project, after five years of planning, is a giant leap in the journey towards implementation of the long-term strategy 2030) of Kuwait Petroleum International (KPI)," the company's Managing Director Bakheet Al-Rashidi said today.
Al-Rashidi was quoted by Kuwait News Agency (KUNA) as expressing great relief over the harmony established among the partners in this Kuwaiti-Japanese-Vietnamese alliance that is to handle this mega strategic project
This project would serve as considerable support for future projects, he added
On the strategic goals of the project, the official listed, "establishing a good position for Kuwaiti exports in southeast Asian markets which are showing economic growth and high demand for oil and oil products, establishing outlet and export venue for some 200,000 barrels/day of Kuwaiti crude oil, and bringing the Kuwaiti oil industries closer to full integration with the addition of both refining and production of petrochemical goods
"Integration of activities is a smart solution and policy adopted by the world's leading corporations as it reduces costs through eliminating the need for transport of feed material to and fro between different facilities and for storage facilities
Integrating refineries and petrochemical plants is in fact 'added value'." This project comes at a capital of USD 9 billion, with KPI and major Japanese refiner Idemitsu Kosan Co
each holding an equal share of 35.1 percent, while State-run PetroVietnam holds another 25.1 percent and Japanese Mitsui Chemicals Inc
holds the remaining 4.7 percent.
Al-Rashidi noted the Nghi Son Petrochemical Refinery is the third owned by KPI, to join Milazzo Refinery in Sicily and Rotterdam oil refinery in the Netherlands
The refinery would be the second in Vietnam and the first built in partnership with a foreign investor, he pointed
The Nghi Son Petrochemical Refinery Complex will be based some 180 kilometers south of Hanoi
Construction is planned for completion by end of 2016, and commercial operation is planned for the first half of 2017 at an overall output capacity of 200,000 barrels/day of crude oil.
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