Idemitsu Kosan Co., a Japanese refiner, and its partners approved a $9 billion oil refinery project in Vietnam to meet rising demand in the country.
The companies expect to start construction in the second quarter of this year and commercial production in 2017, Tokyo- based Idemitsu said in a statement. They’ve awarded an engineering, procurement and construction contract to a consortium formed by Chiyoda Corp., JGC Corp., Technip SA, GS Engineering & Construction Corp. and SK Engineering & Construction Co., according to the statement.
Idemitsu and its partners delayed deciding whether to build the Nghi Son plant, south of Hanoi, at least three times as they resolved issues including how to finance the project. The Nghi Son plant with capacity of 200,000 barrels a day will be Vietnam’s second after the Dung Quat refinery started commercial operations in 2009.
Idemitsu and Kuwait Petroleum International Ltd. each have a 35.1 percent stake in the Nghi Son project, while Vietnam Oil & Gas Group holds 25.1 percent. Mitsui Chemicals Inc. (4183) has a 4.7 percent interest.