Government ponders new refinery project

Hanoi (VNA) - Deputy PM Hoang Trung Hai agreed in principle to incorporate the
Nam Van Phong Petrochemical and Refinery Complex into the petroleum development plan
during a meeting on Dec. 18.

Deputy PM entrusted the investor, the Vietnam National Petroleum Corp., or
Petrolimex, with the carrying out of the investment project and producing a
feasability report. He stressed that due attention must be paid to the project's
environmental impact, use of technological advances, its capital structure and
the selection of partners, particularly regarding the supply of crude oil.

Hai also urged the People's Committee of Khanh Hoa province and the Van Phong
Economic Zone Management Board to prepare necessary documents to submit to
appropriate authorities and the Government, adjusting the province's
socio-economic development plan, land-use plan, seaport system plan to include the
project. He also requested that they support the investor in its preparations for
the investment project and clear the proposed site.

To date, Vietnam has planned 7 refinery projects with a total output capacity
of 60-70 million tonnes per year. However, only the Dung Quat refinery is ready to
commence operations, the deputy PM said.

Vietnam's fuel consumption per capita is currently relatively low, yet still, the
supply of petrochemical products fails to meet demand, which is increasing
rapidly, which emphasises the necessity of effective implementation of the Nam
Van Phong Petrochemical and Refinery Complex project.

Deputy PM Hai said the State, however, is only prepared to fund up to 30 percent
of the project's investment capital as the project is not classified as being one
of national importance.- Enditem