First petroleum to be processed at home

The Hanoi Times - The Binh Son petrochemical company will begin its first 10-day pilot programme tomorrow to process crude oil into petroleum and other products, said Dinh Van Ngoc, deputy general director of the company under the Dung Quat Oil Refinery.

For the first time, the country will be able to actively meet part of domestic demand, decreasing the dependence o­n foreign supplies. This will contribute to the stability of the domestic market, said Ngoc.

Liquefied petroleum gas (LPG), condensate (liquid hydrocarbons separated from natural gas via cooling), kerosene, Jet A1 and diesel will all be made in the first round of production, he added.

About 80,000 tonnes of crude oil were transported to the company for this first pilot programme.

By the end of this month, the refinery will operate at 50 per cent capacity. This year, the refinery will use 3.5 million tonnes of crude oil to process 2.7 million tonnes of products.

Operating at full capacity starting next year, the refinery will meet 30-40 per cent of domestic demand. At present, Viet Nam imports 13 million tonnes of petrol and oil per year.

"The prices of our products will be competitive to ensure the transparent operation of the market and benefit of the refinery," Ngoc said.

Currently, kerosene costs VND12,000 per litre and A92 gasoline, VND11,000 per litre.

Dung Quat Oil Refinery recruited 1,046 workers to begin production.

In the first pilot programme, the refinery will get support from the Petroconsult Company of Romania and the Technip Oil and Gas Company.