Vietnam Announces Expansion of Dung Quất Oil Refinery

Hanoi, The Gulf Observer: Bình Sơn Refining and Petrochemical JSC of Vietnam has revealed updates regarding the expansion of the Dung Quất Oil Refinery, with the project’s estimated cost now standing at VNĐ36.397 trillion (US$1.4 billion), marking an 18.55% increase over the previously estimated figure.

In a decision issued on May 5, 2023, the total investment for the refinery’s expansion was initially projected at VNĐ31.24 trillion. However, following recent adjustments, the Ministry of Industry and Trade has sought clarification from the project’s investor, Bình Sơn Refining and Petrochemical Joint Stock Company (BSR), regarding the selection of optimal technologies and solutions to enhance project efficiency.

On March 29, BSR publicly announced the approval of adjustments to the Dung Quất Refinery expansion project. The expansion will see the refinery’s capacity increase from 148,000 to 171,000 barrels per day, with its products meeting Euro 5 standards and complying with environmental regulations mandated by the government.

The expansion project, slated to last 37 months from the signing of the Engineering, Procurement, and Construction (EPC) contract, is expected to be operational by 2028. Originally approved with a capacity of 192,000 barrels per day a decade ago, the Dung Quất Refinery, situated in Dung Quất Economic Zone, Bình Sơn District, Quảng Ngãi Province, represents a significant investment in Vietnam’s oil refining sector.

With a total investment exceeding $3 billion to date, the refinery stands as Vietnam’s first oil refinery and the second-largest in the country, following the Nghi Sơn Oil Refinery. It boasts a processing capacity of 6.5 million tonnes of crude oil annually, contributing significantly to Vietnam’s energy landscape.