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January 16, 2013
JGC-led JV awarded contract for petroleum refinery and petrochemical complex in Vietnam
A joint venture (JV) consisting of JGC Corp. (www.jgc.co.jp), with Chiyoda Corp. (Chiyoda Corp. (both Yokohama, Japan; www.chiyoda-corp.com/en), Technip (Paris France; www.technip.com), GS Engineering & Construction (www.gsconst.co.kr) and SK Engineering & Construction (both Seoul, South Korea: www.skec.com), has received notification of the award of a contract for the Nghi Son petroleum-refinery and petrochemicals complex in the Nghi Son economic zone in northern Vietnam. The contract was awarded by the Nghi Son Refinery Petrochemical Limited Liability Co., a joint venture between Idemitsu Kosan Co. (35.1%), Kuwait Petroleum International (35.1%), Vietnam Oil and Gas Corp. (25.0%), and Mitsui Chemicals, Inc. (4.8%). The lump-sum turnkey contract calls for the engineering, procurement, construction (EPC) and commissioning work for an oil refinery with a production capacity of 200,000 bbl/d. The complex, scheduled for completion in late 2016, will be located in the Thanh Hoa Province in Vietnam, 200 km south of the capital city of Hanoi. The value of the contract was not disclosed.
This project, which is being promoted by Idemitsu Kosan, Kuwait Petroleum International, Vietnam Oil and Gas Corp. and Mitsui Chemicals, Inc. is a grassroots oil refinery and petrochemical complex project in Vietnam. This project will be the second constructed in Vietnam, and is aimed at satisfying increasing demands for petroleum products to support the progress of Vietnam's motorization, as well as to produce petrochemicals for export. Together with Vietnam's first refinery, the Dung Quat refinery (constructed by a consortium of JGC, Technip and others, and completed in 2009), the Nghi Son refinery and petrochemical complex will be a major pillar supporting the country's economic development.
JGC has been targeting marketing activities toward Southeast Asian countries, including Vietnam, and has been concurrently working on strengthening and expanding JGC Vietnam, an EPC subsidiary of JGC established in Vietnam in 2009. Part of JGC's portion of this project is scheduled to be constructed by JGC Vietnam.