AWR Lloyd provided financial and economic feasibility studies for two underground rock cavern oil storage projects in Vietnam for a joint venture including Vietnamese and Korean companies. The first project involved strategic reserves caverns for a new refinery project (storage for crude oil, diesel and base gasoline) and for a new petrochemical project (storage for naptha and LPG). The second project involves storage to support an existing refinery.

The economics of underground storage are not commonly well known in the oil industry and so AWR Lloyd worked closely with the engineering consultants appointed and with the client to develop some of the key assumptions.

AWR Lloyd’s reports have been used to assess the feasibility of the projects. They have also been used to support tariff negotiations. AWR Lloyd has also been asked to assist in these negotiations.