Construction will begin in July on the 200,000-b/d refinery to be built in the Nghi Son Economic Zone in Thanh Hoa Province, about 200 km south of Hanoi, Vietnam, reports Idemitsu Kosan Co. Ltd. (OGJ Online, Jan. 30, 2013).
Idemitsu, a 35.1% partner in Nghi Son Refinery & Petrochemical LLC (NSRP), has reached a final investment decision after financial arrangements were completed for the $9 billion project.
Project financing will provide $5 billion, and sponsors will provide the remainder. Other partners and their shares in the investment are Kuwait Petroleum International 35.1%, PetroVietnam 25.1%, and Mitsui Chemicals 4.7%.
Project finance will come from direct loans of $2.3 billion from Japan Bank for International Cooperation and Export-Import Bank of Korea and loans from commercial banks totaling $2.7 billion.
The commercial-bank loans are insured or guaranteed by Nippon Export and Investment Insurance or other overseas export credit agencies.
Construction is expected to be complete in 2016. Commercial operations are to begin in 2017.
The refinery, designed to run Kuwait heavy (30.2º gravity) crude, will have an 80,000 b/d fluid catalytic cracker and a 700,000-tonne/year aromatics complex.