Project to cost $1.83 billion and significantly increase capacity.
The Binh Son Refining and Petrochemical Company (BSR) is to implement projects to upgrade and expand the Dung Quat Oil Refinery in central Quang Ngai province. Total investment will be nearly $1.83 billion, according to General Director Dinh Van Ngoc.
The refinery’s capacity will be increased from 6.5 million to some 9 million tonnes per year, equivalent to 192,000 barrels a day. The project will add new workshops with new technologies, increase the capacity of existing workshops, and transform auxiliary workshops, and are expected to be completed by the end of 2021.
According to Mr. Ngoc, at the end of August BSR will sign two important contracts, including one on consulting management and another on design, to develop the facility. The company selected suitable bidders to ensure completion by the end of 2021. Once completed the refinery is expected to enhance operations at BSR and the Vietnam National Oil and Gas Group (PetroVietnam) as well as improve high-standard supply to other markets.
The project will allow the production of many products, including plastic pellets, asphalt, A97 and A98 petroleum, and other special materials for military and defense purposes. BSR also expects to engage about 200 more workers.
BSR meets about 30-35 per cent of total demand for petroleum in the country. Although the refinery’s capacity will increase by approximately 30 per cent after the project is finished demand will also rise, so BSR’s supply to the domestic market will stay at approximately 35 per cent.
The Dung Quat Economic Zone has prepared four land lots with a total area of 108.2 ha in Binh Tri and Binh Thuan communes in Binh Son district to hand over to the project’s management board before the first quarter of 2016.