Dung Quat Refinery expansion plan fixed at 8.5 mln tons of crude and investment of USD 1.82 billion

After much study and calibration, the ambitious plan to expand and upgrade the Dung Quat oil refinery based in Dung Quat Economic Zone of central coastal Quang Ngai province has been eventually fixed and ratified by an Investment Certificate issued by the local government. The target capacity is announced to be 8.5 million tons of crude per year (192,000 barrels per day),  lower than the figure of 10 million tons as tentatively publicized previously. The total cost for this plan is said to be roughly 1.81 billion USD, 30% of which shall be contributed by the involved partner(s) and the remaining 70% shall comes from loans, according to a news article from PVN/BSR.

A ceremony was organized on 23rd Jan 2015 at Dungquat EZ to officially announce the expansion project.

Dungquat’s refinery upgrade and expansion plan estimated to cost $2 billion

PetroVietnam Deputy General Director Le Manh Hung acknowledged during a recent meeting with the Authority of Quang Ngai, where the Dungquat refinery is located, that the plan to upgrade and expand this refinery shall be kicked off in Q.1 2015, clear site should be available in Q2 2016, and construction will commence in Q.3 2017 and expectedly complete in 2021.

The upgrade and expansion plan is estimated to cost between 1.8 to 2 billion USD and shall raise the refinery’s annual capacity from the current 6.5 million tons of crude oil to 10 million tons.

Surroundings of the current refinery

Vung Ro - the third refinery project in Vietnam kicks off

Vietnam has begun construction of Vung Ro oil refinery and petrochemical project in Phu Yen province in the Southern Central Coast of Vietnam. The project, which has an investment of nearly $3.2 billion, is designed to have a capacity of refining 8 million tons of crude per year, and cover an area of 538 hectares, including the area to develop a supporting seaport, according to the Vietnam News Agency.

Groundbreaking Ceremony of Vung Ro Refinery & Petrochemical Project in the south central coast province Phu Yen.

The refinery configuration allows producing fuel products of high quality (LPG, Gasoline RON 92/95, Jet Fuel, Diesel, Fuel Oil) and petrochemical products (Benzene, Toluene, Mixed Xylene, Polypropylene). The products are said to satisfy both current Vietnam specifications and international standards.

Product Slates	VRP Blend (Yield, TPA)	Arabian Light (Yield, TPA)
LPG	388,293	236,307
Gasoline RON 92/95	2,168,403	2,011,559
Jet Fuel	665,546	528,828
Diesel	2,633,036	2,398,811
Fuel Oil	0	867,500
Benzene	73,217	44,069
Toluene	182,869	169,336
Mixed Xylenes	349,082	311,953
Polypropylene	564,222	390,375
Sulfur	7,981	94,037
Total	7,032,649	7,052,775

Source: VRP website

Upon completion, the refinery is expected to create around 1,300 jobs, not to mentioned around 15,000 headcounts shall involve in the construction period and around US$ 110 million of various taxes shall be paid per annum.

General layout of Vung Ro Refinery & Petrochemical Complex. Source: VRP

This is the third refinery project launched in Vietnam, after the Dungquat refinery operating since 2009 and the Nghi Son refinery being now under construction. The latest news from Binh Dinh Province Authority on 11^th Sept 2014 also revealed that detailed ffeasibilitystudy for the US$ 22 billion refinery project of 400,000 bpd has been submitted to Vietnam Ministry of  Industry and Trade for consideration. This project is invested by Thailand-based PTT Group and Saudi Aramco Group and is expected to be joined by other partners.

Under the circumstances of several refineries to come on stream in the next few years, including the fact that the current Dung Quat refinery is working on upgrade and expansion plan, experts foresee the situation of fuel supply exceeding domestic demand; then there’s a high possibility that Vietnam would become a petroleum exporter in the future. 

Russia to sell Vietnam more military hardware

Russian President Vladimir Putin has said his country is going to increase the assortment of military hardware it sells to the Vietnamese army.

The announcement comes on the heels of Putin’s one-day trip to Hanoi where he met with President Truong Tan Sang and other leaders.

The Russian president has said the two nations today signed a new military deal that will see Russia train Vietnamese navy and armed forces.

Russian firms Rosneft and Gazprom also signed a raft of deals with state energy firm Petrovietnam tackling oil exploration and modernization of Vietnam’s oil refinery.

Putin said Gazprom was to supply the Dung Quat refinery with oil and help it market the produce.

Moscow has also promised to help Hanoi develop its nascent energy industry, building a nuclear energy plant and training its atomic experts. Russia will take part in creating the country’s first Center of Nuclear Science and Technology.

The countries concluded a package of cooperation contracts in ecology, healthcare and industry, including textile manufacturing.

In the meanwhile, the International Investment Bank and the Vietnamese Investment bank have agreed a $50 million loan to Vietnam to boost its small business.

Source: Voice of Russia