The government of the Mekong Delta province of Can Tho
has decided to scrap a $538-million oil refinery project following the investors’ failure to kick off its construction after eight years of getting the license, according to the Dau Tu newspaper.
The license was initially granted to a venture between the U.S.-based Semtech Limited BVI and Vietnam’s Vien Dong Investment and Trading Company. However, the U.S. partner pulled out in November 2009 due to financial constraints.
Razeedland Plaza Sdn Bhd, a unit of Brunei's SGB Refinery Petrochemical Corporation Sdn Bhd, earlier this year stepped in, but the investors still failed to implement the project.
The refinery was designed to process two million tons of crude oil annually or 40,200 barrels per day. It has been the largest foreign-invested project so far in Can Tho, which has attracted $1.13 billion in overseas investment as of October 2016.
The cancellation of the refinery in Can Tho is the second in Vietnam this year, after the central province of Binh Dinh dropped a $22-billion refinery and petrochemicals complex project invested by Thailand’s state-owned PTT Pcl in July also due to repeated delays.
The $3-billion Dung Quat oil refinery in Quang Ngai
province is the sole operational plant in Vietnam. Its processing capacity stands at 6.5 million tons of crude oil per year, meeting 30% of the domestic demand.
The $9-billion Nghi Son refinery plant in Thanh Hoa
province, which has an annual processing capacity of 10 million tons, is under construction. It is scheduled to start commercial operation in July next year, but its kick-off may be delayed by four months, according to local media.