In a major boost to Cambodia’s energy and industrial sectors, a Chinese firm has announced plans to invest $3.5 billion in constructing a state-of-the-art oil refinery in the country. The project is expected to strengthen Cambodia’s energy independence. It will create thousands of jobs and stimulate local economic development.
Guanzun Energy Investment Co Ltd, a Chinese company, is preparing to build the nation’s first oil refinery. The location is the Kampot province. It will be the largest in the country. This is a significant development for the Kingdom’s energy sector. The Kampot provincial administration made the groundbreaking project announcement, which was valued at up to $3.5 billion.
The refinery is designed to process 10 million tonnes of oil annually and occupies 234 hectares. To ensure the successful implementation of this massive endeavour, Guanzun Energy has secured partnerships with several leading firms. These include Sinopec Second Construction Group, China Railway Port and Navigation Bureau, and Shanxi Construction Investment Co.
Qiao Guanjun is the Chairman of Guanzun Energy Investment. He emphasized the pivotal role this project will play in enhancing the Kingdom’s energy industry. The development will occur over two distinct phases, each lasting about 18 months. The first phase aims to create a refinery. It will have a capacity of 5 million tonnes of oil per year. The investment will be approximately $2.6 billion.
The specifics of the investment for the second phase are yet to be disclosed. This phase will also have a capacity of 5 million tonnes annually. This significant project represents a major leap for Cambodia. It introduces advanced automation technologies and expertise from China. The refinery is expected to create numerous local job opportunities. It will bolster the country’s energy security by addressing the pressing need for domestic refining capacity.
Collaboration between Cambodian and Chinese businesses sets the stage for a new era in the nation’s energy infrastructure. The Kingdom embarks on this transformative journey and places Cambodia on the global energy map. The Ministry of Mines and Energy (MME) continues its search for investors. It seeks investment for oil exploration both onshore and offshore in Cambodia. Meanwhile, it has been planning to construct an oil refinery. This is to guarantee domestic fuel reserves. “Shortly, the ministry plans to ask for a domestic petroleum refining project. This is to have strategic petroleum reserves. Cambodia’s oil market is small,” said Keo Rattanak, Minister of Mines and Energy, at the ministry’s annual meeting last year.
The minister said that MME has increased its focus on safety in transportation, storage, distribution, and use of petroleum products. This focus comes as it goes ahead with plans for a strategic petroleum refining industry. MME forecasts that the demand for oil products in Cambodia will rise to 4.8 million tonnes in 2030. This is up from 2.8 million tonnes in 2020.
With this significant investment, Cambodia is set to become a key player in the regional oil industry. The new refinery marks a milestone in China-Cambodia economic ties. It also paves the way for long-term growth and energy security in the Kingdom.
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