PIV-Long Son to develop oil and gas zone in Vung Tau

A subsidiary of PetroVietnam will soon start work on an oil and gas industrial zone at Long Son Commune in the southern province of Ba Ria-VungTau, which will accommodate an oil refinery and a petrochemical complex.

The PetroVietnam -IDICO Long Son Industrial Park Investment Joint Stock Co, or PIV-Long Son, will develop the zone covering 1,250 hectares within seven-years at a total cost of 3,309 billion dong. The company expects to start work on the zone within six months, having obtained approval from the provincial government last week.

This will be the 11th zone in the province licensed and the biggest industrial zone up to now in the province.

The new zone will be home to oil and gas projects like a petrochemical complex worth up to US$3.5 billion project of a joint venture between two local companies and two Thai partners.

The stakeholders are PetroVietnam and Vietnam National Chemical Corp (VinaChem) on the Vietnam side, and Vina SCG Chemical Co Ltd (VSCG Chern) and Thai Plastic and Chemicals Public Co Ltd (TPC). This petrochemical complex will consist of a world-scale naphtha-based cracker with an annual capacity of 1.65 million tonnes of olefins, 1.45 million tonnes of polyolefins, 280,000 tonnes of Chlor-Alkali, and 730,000 tonnes of PVC-related products.

Relevant departments and ministries at a meeting in Vung Tau on July 8 had a meeting to discuss ways to hasten progress of Long Son oil refinery and petrochemistry project in Long Son.

Of the total area of the industrial zone, 1,250 hectares will be allocated for oil refinery and petrochemical facilities, and the remaining 70 hectares for building a port.

According to Vung Tau City's authorities, about 1,044 families there will be relocated to make room for the project.

The new industrial zone is expected to help the province to attract investors, as many of the ten operational industrial parks there have been leased out.

In the first six months, industrial zones in Ba Ria -Vung Tau issued licenses to 18 new investment projects with total capital of nearly US$457 million, taking the total number of projects in these industrial estates to 266 with registered capital of 47.33 trillion dong and US$4.757 billion. (SGT)