Dung Quat refinery set for $1.49 bln expansion to increase output by 16%

By Tri Duc
Mon, April 1, 2024 | 10:37 am GMT+7

Binh Son Refining and Petrochemical JSC (BSR), the operator of Dung Quat oil refinery and a subsidiary of state-owned Petrovietnam, is set to spend VND36,397 billion ($1.49 billion) on expanding the refinery.

In a filing to the stock market regulator last week, BSR, also the project investor, said the move would expand the Dung Quat oil refinery's capacity by 16% to 171,000 barrels per day or 7.6 million tons a year.

The expansion also aims to make products fulfil Euro V emission standards and other environmental requirements, while improving the facility’s flexibility to refine different kinds of crude oil.

Additionally, the move will add production lines for manufacturing hydrogen, processing petroleum and diesel with hydrogen, processing alkyl chemicals, and recovering sulfur.

Dung Quat oil refinery in Quang Ngai province, central Vietnam. Photo courtesy of Binh Son Refining and Petrochemical JSC.

Dung Quat oil refinery in Quang Ngai province, central Vietnam. Photo courtesy of Binh Son Refining and Petrochemical JSC.

BSR aims to complete and put the 51.67-hectare expansion, located in Vietnam’s central province of Quang Ngai, into operation in 2028, after 37 months of construction.

In its filing, BSR said CEO Bui Ngoc Duong has been tasked with supervising the project and selecting the EPC (engineering, procurement and construction) contractor(s) for the move.

Petrovietnam has been planning the upgrade of Dung Quat oil refinery for years, one of two operational refineries in Vietnam. The facility, the first of its kind in the Southeast Asian nation, began commercial operation in 2009, fulfilling 30% of domestic demand for gasoline in Vietnam.

The other is Nghi Son refinery and petrochemical complex in Thanh Hoa province, also central Vietnam. Meanwhile, the $5.4 billion Long Son Petrochemicals Complex, invested by Thailand’s SCG Chemicals, began a full trial run in January.

In 2014, Petrovietnam issued an expansion plan for Dung Quat oil refinery. However, the $1.8 billion plan did not receive approval regarding its environmental impacts from the Ministry of Natural Resources and Environment.

In its latest proposal drafted in 2022, Petrovietnam set a target of completing the upgrade in the fourth quarter of 2025 and beginning commercial operations in the first quarter of 2026.

Comments (0)
  • Read More
Vietnam, US 'agree on direction' for negotiating reciprocal trade agreement

Vietnam, US 'agree on direction' for negotiating reciprocal trade agreement

Vietnam and the U.S. have reached a high level of agreement on issues of principles, approaches, content orientations, and plans regarding their negotiations for a reciprocal trade agreement, the Vietnamese government's news portal reported.

Economy - Sat, May 17, 2025 | 10:42 pm GMT+7

Q1 profit of Samsung’s 4 major Vietnam plants drops 39% to lowest in decade

Q1 profit of Samsung’s 4 major Vietnam plants drops 39% to lowest in decade

Four major factories of Samsung Electronics in Vietnam posted a total profit of KRW966 billion ($689.4 million) in the first quarter of this year, down 39% year-on-year.

Companies - Sat, May 17, 2025 | 3:30 pm GMT+7

Our prices 30-40% lower than DHL, Viettel Post: Gozo CEO

Our prices 30-40% lower than DHL, Viettel Post: Gozo CEO

Gozo, a Vietnamese logistics startup, currently holds a key competitive advantage: its prices are 30-40% lower than those of major players like DHL and Viettel Post, said Phan Duy Minh, founder and CEO of Gozo Express.

Companies - Sat, May 17, 2025 | 12:27 pm GMT+7

New rules on foreign investors’ acquisition of shares in Vietnamese credit institutions

New rules on foreign investors’ acquisition of shares in Vietnamese credit institutions

Vilaf lawers provide an insight into the government's new Decree 69/2025/ND-CP which amends a number of provisions of Decree 01/2014/ND-CP on foreign investors’ acquisition of shares in Vietnamese credit institutions.

Banking - Sat, May 17, 2025 | 8:17 am GMT+7

Vietnam forecast to become world’s second-largest rice importer by 2025-2026

Vietnam forecast to become world’s second-largest rice importer by 2025-2026

Vietnam is projected to become the world’s second-largest rice importer in 2025-2026, only after the Philippines, as the country must ramp up imports to meet export demand amid falls in domestic production, according to the latest World Agricultural Supply and Demand Estimates, released by the US Department of Agriculture (USDA).

Southeast Asia - Fri, May 16, 2025 | 11:36 pm GMT+7

The Trump Organization gets okay for $1.5 bln property project in northern Vietnam

The Trump Organization gets okay for $1.5 bln property project in northern Vietnam

A $1.5 billion golf, eco-tourism and urban complex proposed by a joint venture between Hung Yen Investment and Development Group and IDG Capital, which represents The Trump Organization, has received in-principle approval from the Vietnamese Government.

Real Estate - Fri, May 16, 2025 | 10:46 pm GMT+7

Vietnam's leading developer Becamex seeks to become billion-dollar company

Vietnam's leading developer Becamex seeks to become billion-dollar company

Becamex, a leading industrial real estate developer in Vietnam, is strongly restructuring itself, attracting more private investment capital, and reducing state ownership, with an aim to become a billion-dollar company.

Companies - Fri, May 16, 2025 | 5:10 pm GMT+7

S Korea's Hanwha Energy eyes more LNG power projects in Vietnam

S Korea's Hanwha Energy eyes more LNG power projects in Vietnam

Hanwha Energy is keen to invest in more LNG-to-power projects in Vietnam, vice president Kim Young-Wook said in a meeting with the country's Ministry of Industry and Trade on Thursday.

Energy - Fri, May 16, 2025 | 3:32 pm GMT+7

Vietnam, Thailand elevate relations to comprehensive strategic partnership

Vietnam, Thailand elevate relations to comprehensive strategic partnership

Vietnam and Thailand have upgraded their relations from a strategic partnership, established in 2013, to a comprehensive strategic partnership.

Politics - Fri, May 16, 2025 | 12:44 pm GMT+7

Vietnam, China firms partner to develop pumped storage hydropower in Vietnam

Vietnam, China firms partner to develop pumped storage hydropower in Vietnam

Vietnam's Power Generation Corporation 2 (EVNGENCO2) and China's Lancang-Mekong International Company Limited (CSG-LMI) have signed an MoU on cooperation to develop pumped storage hydropower projects in Vietnam.

Companies - Fri, May 16, 2025 | 12:27 pm GMT+7

Vietnam market rebound in May: Leading stocks begin to rally

Vietnam market rebound in May: Leading stocks begin to rally

A new wave of stock market gains appears to be forming in Vietnam, opening up promising investment opportunities for both institutional and retail investors.

Finance - Fri, May 16, 2025 | 11:12 am GMT+7

Malaysia's TNB proposes partnership with Vietnam's EVN in connecting regional power grids

Malaysia's TNB proposes partnership with Vietnam's EVN in connecting regional power grids

TNB, Malaysia's largest utility, has proposed Vietnam's state-owned utility EVN to cooperate in building a power transmission network connecting countries, including a line between Malaysia and Vietnam, via land and sea.

Energy - Fri, May 16, 2025 | 8:17 am GMT+7

New Vietnam-China int'l road transport route opens

New Vietnam-China int'l road transport route opens

Convoys carrying electronic components, fresh vegetables, and daily necessities departed simultaneously from Nanning in south China's Guangxi Zhuang Autonomous Region and Kunming in southwest China's Yunnan province on Wednesday morning, heading for Hanoi, the capital of Vietnam.

Southeast Asia - Thu, May 15, 2025 | 10:34 pm GMT+7

Indonesia’s rice reserve set to hit record 4 mln tons

Indonesia’s rice reserve set to hit record 4 mln tons

Indonesia’s rice reserves are on track to surpass 4 million tons, setting an all-time high after reaching a new record of 3.7 million tons in mid-May.

Southeast Asia - Thu, May 15, 2025 | 10:24 pm GMT+7

China's giant Huadian Group eyes enlarging renewable energy portfolio in Vietnam

China's giant Huadian Group eyes enlarging renewable energy portfolio in Vietnam

Huadian Group, a wholly state-owned company of China, is keen to further invest in Vietnam’s renewable energy sector.

Energy - Thu, May 15, 2025 | 9:40 pm GMT+7

Vietnam’s macroeconomic indicators 'broadly positive': Dragon Capital

Vietnam’s macroeconomic indicators 'broadly positive': Dragon Capital

Vietnam's macroeconomic indicators remained broadly positive, with both trade and FDI attraction performing well in the first four months of the year, write Dragon Capital analysts.

Economy - Thu, May 15, 2025 | 5:47 pm GMT+7