Japan-based oil refiner Idemitsu Kosan and Kuwait Petroleum International have applied with Vietnam for registration of a joint venture (JV) company.
The new company, to be named Idemitsu Q8 Petroleum Limited Liability Company, will be established to distribute petroleum products in Vietnam.
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By establishing a new product distribution company, both Idemitsu and KPI are expected to achieve a stable supply of products to the growing Vietnamese market.
According to Idemitsu, the petroleum products business will cover supply and sales operations in growing overseas markets with focus on Pacific Rim countries.
Idemitsu and KPI already have a stake in Nghi Son Refinery and Petrochemical Limited Liability Company in Vietnam.
Nghi Son refinery is planned to be located about 200km south of Hanoi in Tinh Gia District of Thanh Hóa Province and will have a planned capacity of 200,000 barrels per day.
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By GlobalDataIt is expected to commence operations in 2017.
Reuters quoted an Idemitsu spokesman saying that the JV will receive fuel supplies from Nghi Son once operations begin.
The Vietnamese Government recently issued the investment registration certificate to the companies to apply the enterprise registration certificate for a JV company.
Idemitsu and KPI propose to promote retail and wholesale operations through the construction and management of service stations across the country.
