(EnergyAsia, September 28) — The Vietnamese government has approved the establishment of a joint-venture company to build the Van Phong Petrol Terminal in coastal central province of Khanh Hoa. Vietnam National Petroleum Corporation (Petrolimex) and its subsidiary Petrolimex Joint Stock Insurance Company (Pjico) will team up with Singapore’s PB Tankers to build the terminal and oil-storage facility for an estimated US$100 million.


Petrolimex will hold a 55% stake while PB Tankers Ltd owns a 30% share and Pjico 15%. PB Tankers is linked to Tankstore, an independent oil storage owner in Singapore.


The Petrolimex-controlled terminal will be built on a 40-ha site on My Giang Island in Van Phong Bay, a Petrolimex spokesperson said.


Initially, the joint venture company will invest US$60 million in building tanks with a total capacity of 500,000 cubic metres and a wharf to receive ships of up to 150,000 tonnes in weight, according to the Vietnam News Service.


Construction will begin later this year, with completion expected in 30 months. The tank storage capacity will later be doubled to 1 million cubic metres at a cost of US$40 million, making it the largest in the country.


Vietnamese officials envision the terminal to become Indochina’s main oil storage facility to distribute 5-6 million cubic metres of oil products annually.


Petrolimex officials told VNS that the terminal will be equipped with the most advanced equipment and will enable the country to manage its oil needs.