Steps Taken For Refining Action
BMI View: Sinomach China and Cambodian Petrochemical Company have unveiled a final plan to build Cambodia ' s first refinery plant by 2015. Domestically refined product s will help the country ease its trade deficit burden in the context of a rapidly growing refined products demand. However, mounting anti-China sentiment could prove an obstacle to the project's development, as we saw happening in Myanmar in September 2012.
In late December , Sinomach China Perfect Machinery Industry Corp unveiled its plan to build Cambodia's first refinery in a joint venture with Cambodian Petrochemical Company , to be located within the Kompong Som area . The project has an estimated cost of US$2.3bn and is scheduled for completion by the end of 2015. Once operational, the refinery will produce 100,000 barrels per day (b/d) of various fuels. This large refining capacity will most likely cover and even surpass the domestic consumption that peaked at around 34,000b/d in 2008 and fell back to 26,000b/d in 2010 following the global financial crisis.
The construction of a large refinery is part of Cambodia's plan to ease its dependence on energy imports and international aid ( which have constituted up to 50% of its national budget). It comes amid several projects such as t he recently announced joint venture between Cambodian Royal Group and Chinese Hydrolancang International Energy to build a 400-megawatt hydropower dam on the Mekong tributary in Stung Treng province . Similarly, the country's aim of develop ing its offshore hydrocarbons resources will ease the burden of energy imports , if successful. Chevron , operator on Cambodia's Block A expects first production of hydrocarbons to come by 2016.
|Cambodian Refined Product Consumption, 1997-2010 ('000b/d)|