- PM Pham Minh Chinh seeks Nghi Son refinery expansion with KPC.
- Proposal includes bonded fuel storage and sustainable energy collaboration.
- Focus on crude supply, technical cooperation, and bilateral trade agreements.
Prime Minister Pham Minh Chinh urged Kuwait Petroleum Corporation (KPC) to broaden the Nghi Son oil refinery and establish a bonded fuel storage facility in Vietnam. During his official visit to Kuwait, the cabinet leader proposed the idea at a meeting with Shaikh Nawaf S. Al-Sabah, the deputy chairman and CEO of KPC. KPC serves as the national oil corporation for the State of Kuwait.
Chinh characterized the Nghi Son Refinery and Petrochemical LLC as an emblem of bilateral investment connections and encouraged KPC to collaborate with Vietnamese partners to address unresolved matters at the project based on “aligned interests and mutual risks,” while progressing with its expansion.
He also requested that the Kuwait side maintain consistent crude supplies to Vietnam at competitive prices and explore new collaborative projects in sustainable and eco-friendly energy. He sought the Prime Minister's ongoing guidance to relevant authorities in tackling the obstacles, along with policy incentives and simplified procedures for upcoming projects, particularly in the refining and petrochemical sectors.
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Situated within the Nghi Son Economic Zone in Thanh Hoa province, the $9 billion Nghi Son Refinery and Petrochemical LLC commenced commercial operations in late 2018. Phase 1 can process 200,000 barrels of crude oil daily (which equals 10 million tons annually) and mainly refines Kuwaiti crude oil.
Chinh also recommended that KPC consider collaborating on a bonded fuel storage facility in Vietnam to function as a strategic center for Kuwait's oil reserves in Southeast Asia. During a different meeting with Oil Minister Al-Roumi, Chinh proposed establishing a joint task force to address the unresolved issues at Nghi Son and enhance cooperation in upstream operations, crude supply, product trading, maintenance, technical services, and training.
He encouraged both parties to expedite discussions on a bilateral free trade agreement and to advance efforts on an FTA between Vietnam and the Gulf Cooperation Council. Kuwait’s Oil Minister expressed his anticipation that the newly formed Strategic Partnership between the two nations will enhance energy, trade, and investment relationships in the future.