Prime Minister Pham Minh Chinh Unveils New Details on the $9 Billion Nghi Son Petrochemical Refinery Mega-Project

The Nghi Son Refinery and Petrochemical Project (NSRP) is a joint venture between Vietnamese, Kuwaiti, and Japanese enterprises. While all participating parties are currently profitable, the Vietnamese side is currently operating at a loss.

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On October 15th, Prime Minister Pham Minh Chinh attended the 20th Congress of the Thanh Hoa Provincial Party Committee for the 2025–2030 term. During the event, he provided updates on the Nghi Son Oil Refinery project.

The Prime Minister stated that the Nghi Son Oil Refinery, located in the Nghi Son Economic Zone, is undergoing financial restructuring, which has been approved by foreign partners. Currently, the project has borrowed several billion USD, incurring substantial annual repayments at high-interest rates. He directed relevant agencies to participate in this restructuring process.

Additionally, the Prime Minister instructed coordination with Petrovietnam to expedite the construction of Phase 2 of the Nghi Son Petrochemical Complex. Regarding input resources, he mentioned meeting with Kuwaiti representatives to diversify supply sources, an idea they agreed upon.

Previously, in late June, Prime Minister Pham Minh Chinh met with Mr. Maeda Tadashi, Chairman of the Board of Directors of the Japan Bank for International Cooperation (JBIC), and his associates.

In response to the Prime Minister’s request for project restructuring, the parties have implemented organizational and personnel changes, restructured input materials, optimized power sources, and reduced costs.

Addressing challenges at the Nghi Son Petrochemical Complex, Chairman Maeda Tadashi affirmed that JBIC has been actively working with all parties. He personally pledged to exert maximum effort to find a mutually beneficial solution, ensuring “harmonized benefits and shared risks,” as emphasized by the Prime Minister.

The Nghi Son Petrochemical Complex has a total investment of $9 billion, with Petrovietnam contributing 25.1%, Kuwait Petroleum Company 35.1%, Japan’s Idemitsu Kosan 35.1%, and Japan’s Mitsui Chemicals 4.7%.

According to Idemitsu Kosan’s 2024 fiscal year report, the complex generated approximately ¥800 million (equivalent to $140 million) in operating income.

According to Nghi Son Refinery and Petrochemical LLC (NSRP), the plant operated stably in 2024, achieving an average capacity of 113%. The company processed 83 million barrels (11.4 million tons) of crude oil, producing and selling over 9.7 million tons of products, including 8 million tons of petroleum products and the remainder as petrochemicals. To meet production needs, NSRP imported 42 very large crude carriers (VLCCs) in 2024, a 13.62% increase year-over-year.

In 2024, NSRP contributed over $996 million (approximately 24.7 trillion VND) to the state budget through value-added tax on crude oil imports and other taxes.

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