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. This investment by a Chinese firm in Cambodia 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. With Chinese firms investing heavily in the Kampot province, it will be the largest in the country. This project shows a Chinese firm’s growing influence in Cambodia. It marks 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, involving a Chinese firm in Cambodia.
The refinery is designed to process 10 million tonnes of oil annually and occupies 234 hectares. To ensure the successful implementation of this massive endeavor, 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. A Chinese firm in Cambodia collaborates with these companies to achieve this goal.
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. Notably, a Chinese firm in Cambodia is leading this effort. 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, showcasing the contribution of a prominent Chinese firm in Cambodia.
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. A Chinese firm is leading the charge and introducing 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. Such efforts reflect the impact of a Chinese firm in Cambodia.
Collaboration between Cambodian and Chinese businesses sets the stage for a new era in the nation’s energy infrastructure. With a Chinese firm contributing significantly, the Kingdom embarks on this transformative journey. This effort 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. Keo Rattanak, Minister of Mines and Energy, addressed the ministry’s annual meeting last year. He stated that Cambodia’s oil market is small. He highlighted the involvement of a Chinese firm in Cambodia’s efforts.
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. A Chinese firm in Cambodia is playing a vital role in these developments. 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.
The Chinese firm has made a significant investment in Cambodia. As a result, the country is set to become a key player in the regional oil industry. This new refinery project highlights the role of a Chinese firm in Cambodia. It marks a milestone in China-Cambodia economic ties. It also paves the way for long-term growth and energy security in the Kingdom.
