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| Dung Quất Oil Refinery in central Quảng Ngãi Province. Its expansion project, worth US$1.8 billion, is expected to be completed by 2021. — VNA/VNS Photo Huy Hùng |
Viet Nam News
HÀ NỘI — State-owned Bình Sơn Refinery and Petrochemical Company Limited (BSR) has completed the overall plan for the upgrade and expansion of the Dung Quất Oil Refinery.
Trần Ngọc Nguyên, CEO of BSR, said the expansion project will cost more than US$1.8 billion, of which equity capital and loan capital will account for at least 30 per cent and 70 per cent, respectively.
BSR plans to borrow some $1.26 billion, Nguyên said, adding that the estimated loan amount is in line with the Prime Minister’s decision on granting approval.
Under the project, BSR will set up and put into operation some additional technology workshops for the processing of crude oil with higher sulfur content, such as Murban, ESPO and Arab Light, increasing the stable supply of petroleum products in accordance with the Euro 5 standard.
Crude oil supply of the refinery will also be significantly increased, thus helping it become less dependent on crude oil supply from the Bạch Hổ (White Tiger) oil field.
Expansion work is expected to be completed by 2021, following which Dung Quất Oil Refinery will have capacity to refine 8.5 tonnes of crude oil per year.
At the same time, one more Single Point Mooring (SPM) Buoy will be built 2km to the north of the current SPM to be able to accommodate 300,000-tonne tankers.
Currently, Dung Quất Oil Refinery can refine and blend some 67 kinds of oil and process 15 different types of crude oil from different regions of the world.
Once expansion work is completed, the refinery’s output could rise nearly threefold from more than 2.5 million barrels per day to over seven million barrels per day, ensuring stable and efficient operation and meeting market demands.
To strengthen the supply of crude oil to Dung Quất Oil Refinery before and after the expansion project, BSR has been co-operating with PetroVietnam Oil Corporation (PV OIL) to negotiate with manufacturers and suppliers to sign memoranda, framework agreements and framework contracts, receiving long-term imported crude oil from partners until 2040.
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
