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Dung Quất’s $1.26b borrowing plan: Ministry seeks comments

Update: July, 10/2017 - 17:52
The expansion project of Dung Quất Oil Refinery will cost more than US$1.8 billion. - Photo enternews.vn
Viet Nam News

HÀ NỘI The Ministry of Industry and Trade (MoIT) is consulting and seeking comments from relevant ministries and local authorities on the borrowing plan to expand Dung Quất Oil Refinery, online newspaper vneconomy.vn reported.

The expansion of Dung Quất Oil Refinery is critical to ensure stable and efficient operation and meet the market demand, according to the ministry.

According to the proposal by Bình Sơn Refining and Petrochemical Company Limited, Dung Quất Oil Refinery’s owner, the expansion project will cost more than US$1.8 billion.

The company plans to borrow some $1.26 billion and the rest will be funded from its parent company - Việt Nam Oil and Gas Group.

The MoIT said a council was founded to evaluate the master design and construction estimates of the project.

Previously, Nguyễn Hoài Giang, director of Bình Sơn Refining and Petrochemical Company Limited, said that the expansion project would help improve operational efficiency of Dung Quất Oil Refinery and increase output by 30 per cent while cutting production costs.

When completed in 2021, the expanded plant is expected to meet half of the fuel demand of Việt Nam, Giang said, adding that the plant’s current production capacity is 148,000 barrels per day, meeting one third of the local demand.

Construction of Dung Quất Oil Refinery, located in central Quảng Ngãi Province’s Dung Quất Economic Zone, began in 2005. The refinery, which was put into operation in 2009 with investment of $3 billion, is the first oil refinery in Việt Nam. VNS

 

 

 

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