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Vietnam partner pulls out of Japan-supported refinery

State-owned Petrolimex reluctant on project with JXTG amid oversupply concerns

A man pumps gasoline at a gas station in Hanoi, run by Vietnam's top fuel importer and distributor Petrolimex.
A man pumps gasoline at a service station in Hanoi run by Vietnam's top fuel importer and distributor Petrolimex.   © Reuters

HANOI/TOKYO -- JXTG Nippon Oil & Energy's project to build an oil refinery in southern Vietnam faces cancellation, it was learned Monday, with concerns related to a potential supply glut driving the Japanese company's local partner to back out.

State-owned Vietnam National Petroleum Group, known as Petrolimex, has informed the Vietnamese government of its decision to pull out of the Nam Van Phong refinery project, which was launched in 2008 under the Vietnamese company's initiative in Khanh Hoa Province. It was to be JXTG's first overseas oil refinery construction project.

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