The PetroVietnam Chemical and Services Corporation (PVChem) and the PetroVietnam Fertilizer and Chemicals Corporation (PVFCCo) have signed a cooperative agreement on building a hydrogen peroxide (H202) production plant in southern Ba Ria-Vung Tau province.

The plant is expected to be located at the Phu My I Industrial Park and have total investment of some VND870 billion ($36.19 million), with a designed capacity of 40,000 tons of hydrogen peroxide each year. The plant will also use part of the hydrogen gas source at the Phu My Fertilizer Plant at Phu My I.

PVFCCo will have the opportunity to expand the production and business of chemicals by taking advantage of products from the nitrogen fertilizer production process and the available infrastructure at the Phu My Fertilizer Plant. PVChem, meanwhile, will have the opportunity to develop projects in chemicals and petrochemicals, expand production and business activities, and increase its position in the domestic and foreign chemical supply market.

In the face of opportunities and challenges arising from the rapid transformation in the global economic, political, and social landscape, the trend towards developing interconnected supply chains to enhance competitiveness in the market has become essential.

Executing the strategy of reinforcing internal strengths and developing chain links among units within PetroVietnam (the Vietnam Oil and Gas Group), based on their capacities, strengths, and developmental strategies, after a period of diligent cooperative research, PVFCCo and PVChem came to the realization that the construction of the hydrogen peroxide production plant in Ba Ria-Vung Tau province aligns with the overall planning and developmental objectives set within the trajectory of Vietnam’s petroleum industry and both parties’ future plans. Hydrogen peroxide not only diversifies the manufacturing and business products of both but is also a high-demand commodity in the domestic and international markets.

The project building the hydrogen peroxide factory marks a development step forward in PetroVietnam’s strategy to grow the petroleum chemical industry in-depth. It is hoped that the project will be completed quickly and put into production soon, contributing to the diversification of chemical products from PetroVietnam.