Japan’s Idemitsu Kosan announced on 5 June that it had reached a final investment decision (FID) to build a 200,000 b/d refinery at Nghi Son in Vietnam with partners Kuwait Petroleum International (KPI), state firm PetroVietnam and Japan’s Mitsui Chemicals. Idemitsu said the expected total cost for the project is $9bn, of which $5bn will come through project financing and $4bn will be directly borne by the partners.

Project operator Idemitsu holds 35.1% equity in the Nghi Son Refinery and Petrochemical LLC (NSRP) joint venture, with KPI holding 35.1%, PetroVietnam 25.1% and Mitsui 4.7%. Following the FID and cofinancing agreement, construction is expected to begin in July 2013. Construction is slated to be completed in 2016 and commercial operations are scheduled to begin in 2017. (CONTINUED - 333 WORDS)