The Vietnam National Oil and Gas Group (PetroVietnam) signed a contract October 15 with BNP Paribas, Calyon, and HSBC for a loan of US$145.7 million build a polypropylene plant near its Dung Quat Oil Refinery in the central province of Quang Ngai.

BNP Paribas, Calyon, and HSBC agree to lend PetroVietnam US$147.5 million to build a polypropylene plant near the Dung Quat Oil Refinery (Photo: pvn.vn)

The plant will cost $234 million.

The refinery will provide propylene to the new plant to produce polypropylene, a material used to make plastic and packing items.

Domestic banks had lent PetroVietnam US$20 million last April for the plant.

To be built under an EPC contract, it is expected to begin operating in June 2010.