The government is close to approving the construction of the first-ever condensate blending facility (CBF) in the country.
A top official of one of the companies involved disclosed that they are now in the final stages of the approval process for the multi-million dollar project.
The project will be undertaken jointly by state-owned PetroVietnam Cambodia PLC (PVOILC) and Overseas Cambodia Investment Corporation (OCIC), one of the Kingdom’s largest business conglomerates.
According to James Philip Coppola III, president and CEO of PVOILC-affiliated PetroVietnam Oil International, they have submitted the complete feasibility study to Cambodian authorities.
He said they are only waiting for the Office of the Council of Ministers and the Council for the Development of Cambodia to approve the investment proposal and grant them the investment certificate for the CBF.
While Mr Coppola did not give a timeline for it, it is understood that construction will begin shortly after they receive the go-ahead from the government sometime this year.
Mr Coppola said the project will involve the construction of a world-class facility in Kandal province that will turn condensate into fuel for aircraft and cars, among other uses. The complex will also include a jetty, storage, and employee support accommodations.
Sourced from natural gas, condensate will be mixed with conventional crude and processed into Motor Gasoline 92, gasoil, and liquefied petroleum gas (LPG) for Cambodia’s domestic market. The facility will also produce Jet A-1 for the new airport that OCIC is planning to build nearby.
The CBF will initially have a processing capacity of 130,000 tonnes per year, to be increased to 220,000 tonnes per year later on.
According to Mr Coppola, the condensate that will be processed in Cambodia will come from the Middle East.
Mr Coppola said the project will bring many benefits to Cambodia in terms of meeting the growing demand for energy, employment, and economic growth.
“Kandal province is dependent on agricultural production, so PVOILC will modernise the area, emphasising the high-value energy and technology industries for Cambodia,” he stressed.
Mr Coppola added that the CBF will create significant high paying jobs for the people in the host province.