Roadmap for cleaner fuel transition launched for Vietnam’s first oil refinery Dung Quat

By Minh Hue
Wed, July 2, 2025 | 3:52 pm GMT+7

Binh Son Refining and Petrochemical JSC (BSR) and PV Gas D, a subsidiary of PV Gas, have signed an MoU on LNG trading principles, marking a significant step in BSR’s roadmap to transition from traditional fuels to cleaner alternatives at Dung Quat Oil Refinery.

At the signing ceremony for an MoU on LNG trading principles for Dung Quat Oil Refinery in Quang Ngai province, central Vietnam, June 26, 2025. Photo courtesy of BSR.

At the signing ceremony for an MoU on LNG trading principles for Dung Quat Oil Refinery in Quang Ngai province, central Vietnam, June 26, 2025. Photo courtesy of BSR.

This milestone not only marks a strategic partnership between the two key players in Vietnam’s energy sector but also opens the door for practical adoption of liquefied natural gas (LNG) to replace liquefied petroleum gas (LPG) and fuel oil (FO) at Dung Quat Oil Refinery in the southern province of Quang Ngai.

Under the MoU signed on June 26, both parties agreed on principles, scope, and responsibilities for collaboration, focusing particularly on the use of LNG to replace current fuels. This transition will align with BSR’s timeline for system upgrades and its capacity for LNG reception, transportation, and storage.

Speaking at the event, BSR CEO Nguyen Viet Thang stated that amid a rapidly transforming global energy landscape, driven by the need for sustainable development and greenhouse gas emissions reduction, the use of clean and environmentally friendly fuels is no longer optional - it is essential for all countries, industries, and businesses.

As part of its commitment to achieving net-zero emissions by 2050, BSR is pioneering a wide range of practical initiatives to realize its green transition targets. The cooperation with PV Gas D on LNG supply represents a concrete step in this journey, contributing to emission reduction while enhancing the operational efficiency of Dung Quat refinery, in alignment with sustainable development and international integration goals.

The MoU with PV Gas D is a key step in implementing the comprehensive cooperation between BSR and PV Gas, aiming to green production, cut carbon emissions, and develop the LNG value chain within Petrovietnam - the parent company of PV Gas. It also aligns with the group’s energy transition strategy focused on clean energy, technology innovation, and stronger collaboration among member units.

“We believe LNG is not only a solution for cleaner fuel conversion but also a source of long-term economic value for BSR. Moreover, adopting LNG will help BSR comply with increasingly stringent international standards on carbon emission reductions,” said Thang.

BSR has been conducting technical and environmental assessments since 2023 to evaluate the use of LNG in production. Results show LNG is a cleaner, more efficient alternative that significantly reduces CO₂, SOx, NOx, and particulate matter emissions.

PV Gas D's CEO Do Pham Hong Minh stated that as a pioneer in Vietnam’s low-pressure gas distribution sector, PV Gas D continuously expands its LNG supply capacity to strategic customers. Currently, it supplies low-pressure gas to 130 customers nationwide, with an annual output of around 1 billion cubic meters.

“The MoU affirms our commitment to delivering safe, reliable, and efficient clean energy solutions to BSR – a leading player in the energy and petrochemical industry,” he noted.

It sets the foundation for a future formal LNG purchase and sale contract between BSR and PV Gas D, he added.

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