Long Son Refinery Project 6g1915

Summary Sheet Long Son Refinery Project

Long Son Refinery

Summary Sheet Long Son Refinery Project Main Parameters

Overview

Purpose: To produce LPG; Unleaded Gasoline; Jet-A1; Diesel; FO; Petrochemical products, Sulphur, Asphalt  Location: Long Son Petroleum Industrial Zone, Long Son commune, Vung Tau city, Ba Ria - Vung Tau province, Vietnam  Owner: Petrovietnam (PVN)  Shareholders structure: PVN: 100%  Investment type: t venture amongst PVN and foreign partners (PVN will hold around 25%)  Investment Capital: US$ 8,000 million (rough estimation)  Scheduled Start-up: 2018-2025  Capacity: 10 MMTA (200,000 bpsd)  Maximum foreign equity ownership: 75% 

Economic Efficiency 

Under development

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Total area of the project site: 810 ha including future expansion

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Crude: 100% imported crude

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Technology: processing

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Products: Petroleum fuels to fulfill the domestic market demand and feedstock for petrochemical industry.

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Product specification: minimum equivalent with EURO IV

State-of-the-art

technology

in

deep

Current Status

On-going works 

Pre Feasibility Study has been done

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Seeking for potential partners who are capable of supplying long term stable crude oil; or rich experiences in building and operating refinery; or

Schedule

financing capability  Investment

and construction 2016 -2020  Expected time of commercial operation: 2020. Incentives Competiveness 

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first year of operation; 5% for the next 9 years; 10%

international seaway transportation for crude import and

for the remaining 17 years 

exempt from import tax for immachinery and

favorable fee that applied to other projects in area

equipment imported in the complete production line which are not able to be produced domestically and

Capable to share some common facilities with Southern generation, other utilities and technical services

created fixed assets 

Rapidly increased demand of the petroleum products in Vietnam. As officially forecasted, the average growth of fuel consumption in Vietnam up to 2025 shall be 6.7% per annual. Vietnam should import around 11 million tons of petroleum products in 2015 and 13.6 million tons in 2020.

Exemption from VAT for machinery, equipment, material imported in the complete production line

Strongly ed by Vietnamese Government and

which are not able to be produced domestically and

Petrovietnam 

Import tariff: exempt from import tax for crude oil;

All utilities are available at fence of the refinery with

Petrochemical Complex such as: marine facility, power 

Corporate Income Tax: 0% for 4 years following the

Advantageous in transportation in both domestic and products distribution

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Infrastructures and utilities including road, power, water, communication system to the fence of Refenery.

Nearby the biggest petroleum fuel consumption market of Vietnam (southern market) which takes 60% of demand.

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created fixed during construction phase 

06 months after EPC award, the owners can build up their import, distribution facilities and can distribute the Products based on import products by its own distribution networks, with the volume up to 50% of refinery production, provided that the Project complies with the Government regulations