September 19, 2008

First Oil Refinery in Vietnam to Sell Propylene to Japan

First oil refinery in Vietnam to sell propylene to Japan

HANOI, Sept. 18 (Xinhua) -- Vietnam's first oil refinery Dung Quat, due to put into operation next February, has signed a contract to sell between 75,000 and 150,000 tons of propylene every year to Japanese company Marubeni until 2010, Vietnam News Agency reported on Thursday.

According to the contract signed on Thursday, the prices will be determined on the basis of Singapore's market. The delivery will be made at the refinery's port.

Dung Quat oil refinery, with the investment of 2.5 billion U.S. dollars, will have an annual processing capacity of 6.5 million tons of crude oil once in operation. Its sole investor, PetroVietnam, has recently proposed the government raise the refinery's processing capacity to 10 million tons of crude oil.

Vietnam currently has no processing capacity of crude oil. It imported 9.6 million tons of petroleum products totaling 9.1 billion dollars in the first eight months of this year, up 13.7 percent and 94.3 percent, respectively, according to the country's General Statistics Office.

Meanwhile, it exported nearly 9 million tons of crude oil worth roughly 7.9 billion dollars, down 10.8 percent in volume, but up 53.3 percent in value.

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