PTT Exploration & Production Pcl's (PTTEP) U-Thong petroleum field in Amphur Muang, Suphanburi province, Thailand. (Photo: Dario Pignatelli/Bloomberg)
Thailand’s state-controlled PTT Pcl has postponed plans to construct a refinery and petrochemical complex in central Vietnam, citing changes in the country’s leadership and uncertainty in global oil markets, Reuters reported.
Chansin Treechuchagron, PTT’s senior executive vice president for petrochemicals and refining, said the company will delay the project and review investment at the end of the year.
PTT has been after project, to be carried out in the Nhon Hoi Economic Zone in Binh Dinh
province, for more than four years and had aimed to start construction this year in partnership with state-run Saudi Aramco, the world’s biggest oil producer.
The complex, which includes a 400,000 barrel per day refinery and a petrochemical plant with annual output of 5 million tons, is expect to help meet Vietnam’s domestic demand for oil products and boost its exports.
According to the initial plan, PTT and Aramco would each own 40% of the project in Binh Dinh's Nhon Hoi economic zone, while Vietnam’s state-controlled Vietnam National Petroleum Group (Petrolimex
) has been invited to join the project with the remaining 20%.
Binh Dinh’s authorities have urged the consortium to finish details of the investment plan by the end of this month, otherwise they will have to quit from the project and hand over the land already allocated to them, local media reported.
In February 2016, the investors hinted that they could downsize the investment due to the volatile oil market.