Ho Chi Minh City, 19 August 2016 – PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo – stock code DPM) and Japanese partners namely UBE Industries Ltd (UBE) and Sojitz Corporation (Sojitz) signed the Memorandum of Understanding (MoU) for opportunity research on construction investment of the Ammonia Plant and derivatives from the gas source in Southeast region. The signing ceremony was also attended by representatives of Vietnam National Oil and Gas Group (PVN).
Accordingly, PVFCCo together with UBE and Sojitz will conduct the pre-feasibility research on Ammonia (NH3) production project in Southeast region, with the planned capacity of 1,500 – 2,000 tons/day and the possibility of processing derivatives from NH3, CO2, etc. The pre-feasibility research will be implemented within 6 months since the signing date of MoU.
The NH3 production plant using natural gas in Southeast region will first meet the increasing NH3 demand for production of non-Urea products such as DAP and AS fertilizers, rubber and oil-bearing products.
The construction of NH3 plant is included in the long-term development strategy of PVFCCo aimed at becoming Vietnam’s and region’s leading producer of fertilizers and chemicals, with special attention given to the chemicals fields. PVFCCo has operated Phu My Fertilizer Plant in a safe and effective manner since 2004 and currently is upgrading its NH3 workshop”s capacity from 450 thousand tons to 540 thousand tons/year. The experience in operating Phu My Fertilizer Plant including NH3 workshop will be a huge advantage of PVFCCo in investment in NH3 plant of similar capacity, especially with the cooperation of major partners in chemicals production and trading.
Reportedly, UBE is a large Japanese conglomerate operating in numerous fields and specialized in chemicals. Besides, it is a leading NH3 consumer and producer of Caprolactam (precursor substance of Nylon) in Japan. Currently, UBE has production plants of NH3 and Caprolactam in Japan, Spain and Thailand. Therefore, UBE joins the project both as an investor and a guaranteed buyer in the future.
Similarly, Sojitz is a large Japanese conglomerate operating in multiple-industries including chemicals production and trading and entered the Vietnam market very early. Sojitz is cooperating with PVN for research on several projects on gas processing, especially the project using gas from the Ca Voi Xanh field for production of Methanol and derivatives.
When this project comes into effect, PVFCCo will expand its production scale and NH3 market share as twice as currently. Meanwhile, through the cooperation with PVFCCo, Sojitz and UBE will gain opportunities for expanding the market share of specialized chemicals in Vietnam and the region.
Below are some pictures:
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