Japan to build Vietnam's largest oil refinery

Engineering, procurement, and construction contract already awarded.

Construction of the 200,000 barrel a day Nghi Son refinery and chemical plant, located south of Hanoi, will begin July with an initial date of production expected in 2017. The refinery will be Vietnam’s second after the Dung Quat refinery began commercial production in 2009.

An engineering, procurement, and construction contract has already been appointed to a consortium of Chiyoda Corp., JGC Corp., Technip SA, GS Engineering & Construction Corp., and SK Engineering & Construction Company.

The project will mostly be funded by pre-arranged financing agreements. This includes US$2.3 billion from the Japan Bank for International Cooperation, and the Export-Import Bank of Korea, and US$2.7 billion in various loans from several commercial banks. The remaining $4 billion will be supplied by Idemitsu and its partners.