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May 07, 2023 / 19:34

Expansion of US$1.25 billion Dung Quat oil refinery approved

It is expected to help ease the pressure on the country's petroleum supply.

Vietnamese Deputy Prime Minister Tran Hong Ha on May 5 gave a nod to upgrade and expand Dung Quat Oil Refinery with an investment of more than US$1.25 billion.

 Dung Quat Oil Refinery is located in the central province of Quang Ngai. Photo: VNA

According to the decision, the plant will increase its processing capacity from 148,000 barrels to 171,000 per day. 

The plant will upgrade technology, five auxiliary workshops, and two peripheral workshops to meet the raised capacity.

Located in the central province of Quang Ngai, the project will be implemented on an area of approximately 51.67 hectares.

Of the new investment, $503 million will come from existing equity and the rest from loans.

The upgrade and expansion are anticipated to come to completion in the first quarter of 2028.

Dung Quat Oil Refinery supplies 35% of Vietnam's petroleum needs. The expansion is expected to help relieve pressure on the country's petroleum supply which is also from import.

Vietnam has Dung Quat Oil Refinery, Nghi Son Refinery and Petrochemical LLC, and condensate processing plants with a total capacity of 14 million tons of oil per year. The volume meets about 70% of current domestic demand, and the rest is imported through major oil trading companies.

The country may build another oil refinery complex worth up to US$19 billion in the southern province of Ba Ria – Vung Tau, operated by PetroVietnam, with a capacity of 10 million tons per year