Logo of Phnom Penh Post newspaper Phnom Penh Post - Planning delays oil refinery’s progress

Planning delays oil refinery’s progress

Planning delays oil refinery’s progress

Construction on Cambodia’s $2.3 billion oil refinery has been set back again, this time due to planning delays, the project’s local partner, Cambodia Petrochemical Company (CPC), confirmed yesterday.

The landmark oil refinery was slated to begin construction in December 2013 following a $1.67 billion loan from the Export-Import Bank of China (Exim Bank), but Hann Khieng, CPC co-owner, said yesterday that more detailed planning was required before the project could begin.

“I believe we will be able to start groundbreaking soon, maybe in mid-November this year since the weather in the next few months will make it difficult for construction to start,” he said.

The plant, which will be built on 80 hectares between Preah Sihanouk and Kampot, is now expected to be finished in late 2016.

Khieng said the company will import crude oil from the Middle East, which will then be processed at the plant. He expects the plant to produce five million tonnes of oil per year for both domestic and off-shore markets.

Cambodia imports more than a million tonnes of oil a year from abroad to supply local demand.

Kim Natacha, executive director of Cambodia for Resource Revenue Transparency said the plant would help prepare Cambodia for its future plans for offshore oil extraction but warned that its environmental impact would need to be fully understood.

“An environmental impact evaluation should be done thoroughly for the oil refinery construction plan to ensure it doesn’t negatively impact the community area near the plant,” she said.

MOST VIEWED

  • Omicron patients can stay home: PM

    The Ministry of Health has issued a directive on the treatment of people who have tested positive for the highly transmissible Omicron coronavirus variant, following a suggestion from Prime Minister Hun Sen on the night of January 21. The directive permits home quarantine for those who

  • The effects of the USD interest rate hike on Cambodian economy

    Experts weigh in on the effect of a potential interest rate expansion by the US Federal Reserve on a highly dollarised Cambodia Anticipation of the US Federal Reserve’s interest rate hike in March is putting developing economies on edge, a recent blog post by

  • Cambodia’s first ever anime festival kicks off Jan 22 at capital’s F3 centre

    Phnom Penh's first ever Anime Festival will bring together fans, artists, shops and other local businesses with ties to the Japanese animation style for cosplay competitions, online games, pop-up shops and more on January 22, with Friends Futures Factory (F3) hosting. F3 is a project that

  • Hun Sen gets 4th Covid shot, urges compatriots to follow

    Prime Minister Hun Sen and his wife Bun Rany on January 14 received their fourth dose of Covid-19 vaccine and called on compatriots to follow suit as the Omicron coronavirus variant continues to spread in the community. This marks the launch of Cambodia's fourth-dose vaccination campaign,

  • Fourth dose Covid booster drive jabs 43K in two days

    In the first two days of the fourth-dose Covid-19 vaccination campaign, more than 43,000 people volunteered to get the jabs, while over 4.6 million people have received a third shot. Health ministry spokeswoman Or Vandine said that fourth-dose vaccinations, which began on January 14 exclusively with the Pfizer

  • Singapore backs Cambodia's efforts on Myanmar

    Singaporean Prime Minister Lee Hsien Loong supports Cambodia in its efforts to seek a solution to the ongoing Myanmar crisis as the chair of ASEAN. Lee expressed his support during a meeting with Prime Minister Hun Sen via videoconference on January 14, with the talks focused