Vietnam to Expand Capacity at State-Run Dung Quat Refinery

SEATTLE (Oil Monster): Vietnam plans to expand the capacity at the state-run Dung Quat refinery by more than 30% over the next five years.

The proposed expansion will raise the capacity of the refinery located in the central province of Quang Ngai from 148,000 barrels per day (bpd) to 171,000 bpd at an investment of approximately $1.26 billion. Out of this, Binh Son Refining and Petrochemical Joint Stock Company (BSR), the operator of the refinery, will provide $503 million from its equity, while the remaining amount will be met with loans.

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Accordingly, the 10.6ha refinery will be expanded by 41ha. Also, the refined products from the refinery will be upgraded to meet Euro-V standards. The expansion works are expected to be completed on or before the initial quarter of 2028.

The Vietnamese government had initially approved an expansion plan of $1.8 billion in December 2014, but it was put on hold in April last year due to funding difficulties. Later on, the capacity target was reduced from 192,000 bpd to 171,000 bpd, which resulted in lowering of investment by $540 million to $1.26 billion.

The Dung Quat refinery, owned and operated by Petrovietnam, had begun refined crude oil products sale in 2010. It is the first oil refinery in Vietnam and produces nearly 6.5 million tonnes of crude oil products every year.