Posted on 10/29/2013 10:44:17 PM PDT by TexGrill
Construction on Vietnam’s second refinery started Wednesday as the country plans to increase its petroleum output to meet growing energy demand.
The Nghi Son refinery, which will cost a total of around US$9 billion to build, will have a refining capacity of 200,000 barrels per day, or 10 million tons per year, once it comes online in 2017.
As a team, the new plant and the existing Dung Quat refinery are expected to satisfy 65 percent of the nation’s oil and gas needs by 2020. Dung Quat, Vietnam’s first refinery, opened in the central province of Quang Ngai in 2009.
Located in Thanh Hoa Province, about 200 kilometers south of Hanoi, the Nghi Son refinery will import oil from Kuwait to process it into liquefied petroleum gas (LPG), gasoline, diesel fuel, jet fuel, polypropylene, paraxylene, benzene and sulphur.
Speaking at the groundbreaking ceremony, Prime Minister Nguyen Tan Dung appreciated the efforts of PetroVietnam and foreign partners for arranging capital and completing investment procedures to enable the groundbreaking.
Dung required relevant ministries and agencies to support the investor, Nghi Son Refinery and Petrochemical Company, to implement the project.
The refinery is a joint venture between Petro Vietnam, Kuwait Petroleum International, Japan's Idemitsu Kosan and Mitsui Chemicals.
A consortium led by Japan's JGC Corp., Chiyoda Corp., GS Engineering & Construction Corp., SK Engineering & Construction Co., Technip France, and Malaysia’s Technip Geoproduction are the contractors.
(Excerpt) Read more at thanhniennews.com ...
For nine billion dollars they could throw up a couple of nuclear plants and be energy independent for a generation.
Do you really think another refinery is going to be all that helpful in the long run?
I thought that this was interesting:
http://eep3r091.files.wordpress.com/2011/12/energy-policy-vietnam.pdf
Looks like they have a plan...they are generally unhappy that they sell their natural resources to China and then buy back the finished product (coal, electricity).
The vehicles do not run on electricity. A nuclear power plant will not power them. $9 Billion might build the power plants, but it won't build the additional infrastructure to deliver that power all over the country to rural locations where the farms and factories need transportation fuel for trucks and tractors. It won't replace every vehicle for a short range electric mini-car.
That is not a replacement for a refinery and a country that needs transportation fuel for existing vehicles.
Do you really think another refinery is going to be all that helpful in the long run?
Yes. Vietnam is already a net exporter of Crude Oil but an imported of refined product. They need to expand their refining capabilities to use their own oil to better meet their own needs. That need is not going away in the future.
Vietnam already generates more electrical power than they use themselves and is a net exporter of electricity.
VIETNAM, Country Analysis Note (Energy)
http://www.eia.gov/countries/country-data.cfm?fips=VM&trk=m
Your suggestion is similar to telling someone who has more water than he can use, but not enough food, that he should spend his money digging another water well, not expanding his farm.
Touche! The problem, obviously, is that I did not know as much as I thought I did.
Any day that ends with less ignorance is a Good Day.
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