Thursday, September 3, 2015

Dung Quat refinery’s expansion project: Amec Foster Wheeler wins FEED contract

Front-End Engineering Design (FEED) Contract worth of USD 25.6 million was inked on 28th August 2015  between representatives of  Binh Son Oil Refinery and Petrochemical Company (BSR - the operator of Dungquat refinery  - a subsidiary of Vietnam Oil and Gas Group) and  English-based Amec Foster Wheeler Energy Company Limited  for the upgrade and expansion of Dung Quat oil refinery based in Quang Ngai Province. 

After  5 years of commercial operation, the plant has produced approximated 34.6 million tonnes of gasoline, oil and other petrochemical products, satisfying 34% of the national fuel demand. A plan to upgrade it and expand its capacity to 8 million tons of crude per annum has gone through much debate and was finally confirmed early this year, following a written approval by the Vietnam’s prime minister.

An international bidding was organized to select the contractor for FEED design, and Amec Foster Wheeler is the winner. Information on the bidding results had not been disclosed until the contract signing ceremony was widely publicized recently.

Dung Quat refinery upgrade and expansion project
- FEED contract signing ceremony between BSR and Amec Foster Wheeler -
In a press release, Amec Foster Wheeler  announces that the two year contract includes optimization of the refinery configuration, coordination of licensors, and the design for new units as well as the revamp of existing units. This includes establishing the optimum project definition to allow the project to be implemented at the lowest cost, while increasing the stable supply of petroleum products in accordance with the Euro 5 standard.  The company will also support BSR’s contracting activities ready for the next phase of the project.

Foster Wheeler is not a strange name in Vietnam’s energy sector. It is known as the FEED contractor for Nghi Son oil refinery in the North of Vietnam, and was involved in the original design of Dung Quat refinery 15 years ago.

The FEED for this project is expected to be completed and available within 15 months  since the contract date.

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