Refinery will be able to diversify input and output after project completed.
The Binh Son Refining and Petrochemical Company (BSR) has signed a $25.6 million design contract with Amec Foster Wheeler, a UK engineering consultancy company, to upgrade and expand the Dung Quat Oil Refinery in central Quang Ngai province.
After being upgraded and expanded, Dung Quat’s capacity will rise from 6.5 tonnes per day to 8.5 tonnes (192,000 barrels). It will take 15 months for the design, and by 2021 the upgrade and expansion will be completed.
Chairman of BSR, Mr. Nguyen Hoai Giang, said that the targets of the project are to diversify crude oil sources because, after upgrading, the refinery will be able to process crude oil from the Middle East, Western Africa, and Russia. Output will be also diversified as a result, including plastic pellets, asphalt, A97 and A98 petroleum, and other special materials for military and defense purposes.
Mr. Giang said that the refinery was previously designed to process 100 per cent of the crude oil from the Bach Ho oilfield, which lies 145 kilometers off the coast of southern Ba Ria Vung Tau province and has a capacity of 6.5 million tonnes of crude oil per year. After five years of operation the refinery has produced over 36 million tonnes of petrol products and met 34 per cent of domestic petrol demand. It also contributed VND116 trillion ($5.16 billion) to the State budget.