Hanoi (Platts)--23Nov2012/240 pm EST/1940 GMT

Thailand's PTT Plc is considering building a huge petrochemical and refining complex in Vietnam, according to a statement released Thursday by the provincial government of the Vietnamese central province of Binh Dinh.

Sukrit Surabotsopon, PTT's senior executive vice-president for petrochemicals and refining, presented a pre-feasibility study to top provincial officials on November 22.

The complex, in the Nhon Hoi Economic Zone of coastal Binh Dinh province, is scheduled to have a capacity of 660,000 b/d or 36 million mt/year. "PTT, through initial studies, has found that the Nhon Hoi Economic Zone is suitable for building a mega petrochemical and refining complex," the statement said.

Total investment is expected near $28.7 billion, which is projected to be funded by PTT, Vietnamese companies and investors in other countries, it added.

Nguyen Van Thien, the top provincial official, expressed appreciation for the PTT plan. But he asked the Thai company to clarify the sources for the project's funding. He also urged PTT to soon complete a feasibility study, which would be submitted to Vietnamese and Thai central governments for consideration.

The Binh Dinh province pledged to create favorable conditions for the Thai investors to complete the project, Thien said.

PTT could not be immediately reached for comments late Friday.

Vietnam's first 130,000 b/d refinery at Dung Quat, also in the central region, is supplying 30% of the country's oil product demand, with the remainder coming from imports.

Meanwhile, state-owned PetroVietnam is expected to sign the engineering, procurement and construction (EPC) contract for its second petrochemical and refining complex at Nghi Son early next month, PetroVietnam's general director Do Van Hau said last week.

The 200,000 b/d Nghi Son project, to be located in the northern province of Thanh Hoa, would be owned by PetroVietnam (25.1%) along with Kuwait's Q8 (35.1%), Japan's Idemitsu Kosan (35.1%) and Mitsui Chemicals (4.7%).

--Dao Dang Toan, newsdesk@platts.com

--Edited by John Kingston, john_kingston@platts.com