KPI-backed Nghi Son refinery eyes new investments

This step aims to enhance the overall operational efficiency of the complex and create an integrated environment that reduces production costs. Through this investment system, the refinery intends to encourage developers and businesspeople to establish facilities within the geographical area of the complex, allowing them to benefit from its advanced infrastructure. These investments are expected to maximize the value of the byproducts and petroleum derivatives produced by the complex, transforming them into highly economically viable materials, instead of selling them as low-value raw materials. This new operational approach is a qualitative shift in the management of Kuwaiti oil assets abroad, transforming the project from a crude oil refinery into an integrated industrial hub that attracts complementary investments and serves as a major development driver in Southeast Asia.

The investment stakes in the refinery are distributed among four main partners – Kuwait Petroleum International (KPI), a subsidiary of Kuwait Petroleum Corporation (KPC), holds 35.1 percent stake, Idemitsu Kosan in Japan also holds 35.1 percent stake, Vietnam’s state-owned oil company, PetroVietnam, holds 25.1 percent stake, and Mitsui Chemicals in Japan owns 4.7 percent. The capital value of this consortium is $9 billion.

The initiative focuses on maximizing the added value of certain compounds and byproducts from basic refining and petrochemical processes, such as paraxylene, benren, propylene and polypropylene. It will utilize sulfur deposits and convert them into higher-value products, including the establishment of sulfuric acid production plants and use of LPG byproducts. It also intends to utilize heavy distillation residues and fuel oils to produce special chemicals and high-quality jet fuel.