Work begins on site clearance for Dung Quat oil refinery expansion and upgrade project

Binh Son Refining and Petrochemical JSC (BSR) and Vietnam Petroleum Construction JSC (PETROCONs) on Monday commenced work on a site clearance package for the Dung Quat oil refinery expansion and upgrade project in Quang Ngai province, central Vietnam.

The package, carried out by PETROCONs, is valued at more than VND369 billion ($14.18 million) and involves reclaiming over 2.7 million cubic meters of land. Construction is scheduled to take 10 months at the existing Dung Quat refinery site in Dung Quat Economic Zone.

PETROCONs was the sole bidder and won the contract. Separately, bidding is under way for the project’s engineering, procurement and construction (EPC) package, estimated at nearly VND31.65 trillion ($1.22 billion), with bid submission and opening scheduled for February 3, 2026.

The Dung Quat refinery expansion and upgrade project has a total investment of nearly $1.5 billion and received revised investment approval from the Prime Minister in May 2023.

The project aims to raise the refinery’s processing capacity from 148,000 barrels per day to 171,000 bpd, enable production of Euro V-standard fuels, diversify crude oil feedstocks and ensure stable supply.

Upon completion, output of key products is expected to increase significantly, including gasoline to about 79,700 bpd from 65,900, diesel to around 59,200 bpd from 53,200, and jet fuel/kerosene to roughly 13,100 bpd from 5,300.

The upgrade will also enhance the refinery’s flexibility to process a wider range of crude oils, from light sweet crudes with low sulphur content of around 0.12% to heavier to more sour crudes with sulphur levels of up to 0.34%, while improving operational efficiency and resilience to global crude market fluctuations.

BSR CEO Nguyen Viet Thang said PETROCONs has extensive experience, having participated in numerous major oil and energy projects.

PETROCONs was involved in the construction of the Dung Quat refinery from its early stages, including site clearance, breakwater works, and the main plant.

The supervision consultancy contract has been awarded to Quang Ngai Construction and Investment Consultancy Corporation and PetroVietnam Technical Services Corporation (PTSC), while PVI Insurance has been selected to provide site clearance insurance.