This Oil Refinery project invites Investors to Cooperate. The project has been approved by all the levels of Vietnam government.
Feasibility Study of Can Tho Refinery Project
Chapter 1 - Basic and Principle for Compilation of Feasibility Study 1/4
BASIS AND PRINCIPLE FOR COMPILATION OF THE FEASIBILITY STUDY
A. Basis for Compilation of the Feasibility Study
1) All approved legal Documents for developing Project.
2) Technical Consulting Contract for Vietnam CAN THO City 2000kt/a Refinery. The Feasibility Study Contract for Vietnam 2000kt/a Refinery was signed between Beijing Petrochemical Design Institute and TECH LIMITED on November 10, 2005.
3) Relevant basic data including the geographic position of the refinery site, properties of the crude oil, etc.
B. Principle applied in Compilation of the Feasibility Study
1) The annual crude oil processing capacity of the refinery is 2000 kt. The refinery is located at the expansion Block of Hung Phu Industrial Zone indicated in the Attachment 1 of the Minutes of the Feasibility Study Conference regarding the Implementation of Sino-Vietnam Joint Construction of the Refiner (as shown in Drawing in appendix);
2) The crude oil to be processed in this refinery is 100% Vietnams White Tiger crude oil or equivalent crude, with an actual sulfur content of 0.03~0.05%. In order to improve the process adaptability, the feasibility study is based on the crude oil with a sulfur content of 0.1~0.3%. Besides, alternative feedstock of the project that having equivalence property as White Tiger Crude Oil ( such as West Africa , Middle East and Black Lion Crude Oil) in order to ensure supplying feedstock in long term for the project.
3) The mature, reliable and advanced technology and engineering standards shall be applied to the newly built units. Furthermore, their combination shall be optimized.
4) The products are light naphtha, 92 RON and 95 RON gasoline, diesel oil and LPG. In order to save investment, quicken the pace of construction, and try Feasibility Study of Can Tho Refinery Project Chapter 1 - Basic and Principle for Compilation of Feasibility Study 2/4 to achieve benefits as soon as possible, the design is based on the quality of gasoline that meets the current standard of Vietnam, while the space is reserved for product upgrade in the future. The quality of diesel oil shall meet the current standard of Vietnam.
5) Advanced design mode is adopted for the refinery. Flow-type combined layout is adopted for
Production plants and facilities to save pipeline and floor area, reduce the required number of personnel, save investment, make the most of the internal heat and decrease the energy consumption as far as possible.
6) The reasonable link with the projects in gaseous chemical industry (gas fractionation, polypropylene, alkylation, etc.) that may develop in the future should be taken into consideration. The space shall be reserved for future development.
7) The engineering automation shall be under centralized control in order to optimize the operation, raise the product yield, reduce the operating personnel and increase the economic benefits. The Central Control Room shall be set in the refinery to realize the integrated management and control.
8) The laws and regulations of Vietnam regarding the environmental protection, safety, health and fire fighting shall be fully complied with. The safeguard measures, such as Three Wastes treatment, safety, health and fire fighting, shall be taken along with the construction.
9) The wastewater discharge and atmospheric emission shall be subject to the national standard of Vietnam.
II. PROJECT DESCRIPTION.
Vietnam CAN THO CITY 2000kt/a Refinery is planned to be built in CAN THO CITY of Vietnam jointly by a Vietnam INVESTMENT TRADING CORPORATION (10% shareholder, herein after referred to as V .I.G Corp.) and ..TECH LIMITED (80% shareholders, herein after referred to as S.TECH). After the project initiation was approved by Vietnam government, the Vietnam V.I.G Corp. and .TECH decided to go through the examination and approval formalities for feasibility study of the project as soon as possible. .TECH and V.I.G Corp. thereby hire Beijing Petrochemical Design Institute to compile the Feasibility Study.
III. LEGAL ENTITY OF PROJECT
The operating system of this project is the Sino-Vietnam joint venture in Vietnam.
IV. NECESSITY OF INVESTMENT.
The investment and construction of this project has historical significance for petroleum refining and energy guarantee of Vietnam. This project, which will fill up the gap of refining of Vietnam, is one of the starter petrochemical projects in Vietnam. The implementation of this project will completely change the present situation that Vietnam has to rely on its neighbors for petroleum products. Vietnam has crude oil resource. The refinery to be built will essentially guarantee the energy supply for national economic development of Vietnam, and form or improve the strategic reserve of petroleum and its products to a certain degree. Up to now in Vietnam there are two refining and petrochemical complexes. In which Dung Quat is developing, Nghi Son refining and petrochemical complex is calling for investment. Besides, South Refinery also prepare for investment phase. In the other hand Prime Minister also allow some refinery with smaller capacity to study for investment, Can Tho Refinery is one of these to meet the the demand of petroleum market of all area of Cuu Long River Delta from year 2009. In aspect of developing economy and refining technology of Vietnam, investment of Can tho refinery project with medium scale have significant economic and social role. This project can satisfy 50% of the demand for product oil in southern Cuu Long River Delta of Vietnam, which is a relatively developed region in Vietnam, with a relatively higher consumption of product oil. Undoubtedly, the implementation of this project will effectively promote local economic development. Therefore, investment of Con tho Refinery Project is essential and objective demand for following purpose:
- To ensure national energy security by meeting demand of domestic petroleum market;
- To reduce depending on international market;
- To contribute a part to implement main content of developing economy and social strategy in period of 2001 -2010 in The Resolution of Ninth Communist Conference that is developing equally among area in whole country and it is also complied with order of Prime Minister in aspect of ensure to supply petroleum products for overall Cuu long River Delta to adhere to developing very importance economic zone in the South.
V. ADVANTAGES IN CONSTRUCTION OF THE PROJECT
1) Crude oil resource guarantees for project. Vietnam has crude oil. The production of White Tiger, Black Lion crude oil and other field is being showed downward tendency. Total Production in 2006 is estimated 17 million tones. However, to cover shortage of feedstock, the refinery has planned to import crude oil from Middle East, and using mixed Vietnamese crude and Middle East crude. Based on this point of view, feedstock of refinery with total volume of 2 million tones will be supplied firmly.
2) White Tiger crude oil has a good quality. However, in the first years of project, White Tiger crude oil shall be used as feedstock for the project (via bidding of Petro Vietnam). Several years later, after refinery is on stream, project will consider importing Middle East Crude Oil with ratio of 50% to 100%. By this road map which may result in less investment, shorter construction cycle, better economic benefits and higher competitiveness of this project.
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