Kuwait-backed $9bn oil refinery completed in Vietnam
KPI holds a 35% stake in Nghi Son project, Vietnam's first refinery with foreign investors
An oil refinery in which a Kuwait company holds stake has commenced operations in Vietnam. The 200,000 barrels-per-day Nghi Son Refinery and Petrochemical Complex is Vietnam’s first refinery to feature foreign investors.
The project’s stakeholders include Kuwait Petroleum International (KPI) and Idemitsu, both of which hold 35.1% stake in the scheme, in addition to PetroVietnam and Mitsui Chemicals. The four firms contributed $4bn to the scheme’s total $9bn investment capital.
Construction work on the project started in 2013, and the project is Vietnam's second refinery, Kuwait's state-news agency, Kuna, reported.
In a press statement, Tokyo-based Idemitsu said: "Intended to secure stable domestic supplies of petroleum products in Vietnam, the refinery is a highly efficient facility that has the capacity to [...] maximise the production of high-value-added petroleum products through use of sophisticated cracking facilities.
"Its petroleum products will provide a stable supply to meet Vietnam's booming demand for energy, and its petrochemical products will be sold throughout Asia."
KPI, one of Kuwait's largest public-sector employers, has steadily progressed with development schemes in the Gulf state this year. In September, it was revealed that Akzonobel would supply its products for the $14bn (KWD4.2bn) Al Zour refinery, which will produce low sulphur fuel oil to replace a higher gradient currently used in local power plants.
The Kuwaiti company is also expanding its international operations, and in March 2018, announced it would build a network of electric vehicle (EV) charging stations in Belgium for Ionity.
Ionity is a joint venture of BMW Group, Daimler AG, Ford Motor Company, and the Volkswagen Group, including Audi and Porsche.