Long-term Off-take Agreement for Polypropylene and Sulfur in Vietnam

Jun. 26. 2013
Marubeni Corporation

Marubeni Corporation has concluded an off-take agreement with Nghi Son Refinery and Petrochemical Limited Liability Company, the operator of the Nghi Son Refinery & Chemical Complex in Vietnam, for its products, namely polypropylene and sulfur. Idemitsu-Kosan Co., Ltd, one of the largest oil refineries and distribution companies in Japan, Mitsui Chemicals, Inc., a major Japanese petrochemical company, Kuwait Petroleum International and PetroVietnam are expected to start construction of the complex and aim to begin commercial production in 2017.

Polypropylene, polymerized propylene which is processed from heavy oil recovered from the oil refining process in the complex, is one of the commodity plastics widely used in daily household goods and industrial materials. Marubeni will off-take a certain portion of annual production (370,000MT) for the long-term period to distribute mainly within the Vietnamese domestic market and export partially. Marubeni is the only non-shareholding company selected as off-taker of petrochemical products from Nghi Son Refinery & Chemical Complex for its well-established polypropylene import sales and propylene handling records in Vietnam.

Sulfur is processed into sulfuric acid and used for fertilizer production and metal leaching. Marubeni will off-take over half of the annual production for the long-term period to distribute domestically in Vietnam and also export to neighboring countries where rapid demand increase is expected.

Marubeni is delighted to be a support of the first Japanese-owned refinery & chemical complex located outside of Japan in terms of stable operations by committing to long-term off-taking and is willing to continue its contribution to the emerging Vietnamese economy for further development.

< Nghi Son Refinery & Chemical Complex profile>

Shareholders: Idemitsu Kosan Co., Ltd  35.1%
Kuwait Petroleum International             35.1%
PetroVietnam             25.1%
Mitsui Chemicals, Inc.  4.7%
Oil refining capacity: 200,000 barrels per day
Main products: Para-Xylene 700,000MT
Benzen           240,000MT
Polypropylene  370,000MT