Investing more than 31,000 billion VND to expand Dung Quat oil refinery

Deputy Prime Minister Tran Hong Ha signed Decision No. 482 dated May 5 approving the adjustment of the investment policy for the project to upgrade and expand the Dung Quat Oil Refinery. Previously, the Government approved in Document No. 2579 dated December 16, 2014, and the Vietnam Oil and Gas Group approved in Decision No. 9016 dated December 22, 2014. However, due to many difficulties, the project to upgrade and expand this plant has not yet been implemented.

Đầu tư hơn 31.000 tỉ đồng mở rộng nhà máy lọc dầu Dung Quất - Ảnh 1. — Dung Quat Oil Refinery will receive investment of more than 1.25 billion USD for upgrading and expansion.

According to the Decision, the project will upgrade and expand the existing Dung Quat Oil Refinery, increasing the processing capacity of the plant from 148,000 barrels/day to 171,000 barrels/day; products meeting EURO V standards; meeting environmental standards according to the Government 's mandatory roadmap...

The project will be deployed on an area of approximately 51.67 hectares, including more than 41 hectares of additional expansion and more than 10.6 hectares of existing reserve land inside the factory, not using sea surface.

Total project investment capital is 31,235 billion VND, equivalent to 1,257 billion USD. Capital source is based on the owner/loan structure, ratio 40/60. Investors are considering to adjust the owner/loan structure to suit the actual ability to balance resources and bring higher efficiency.

specifically, equity is 12,494 billion VND, equivalent to 503 million USD. Loan capital is 18,741 billion VND, equivalent to 754 million USD.

The capital required to balance the source is 27,299 billion VND (calculated from the preliminary investment total minus the refunded VAT and the implemented costs), including equity capital of 10,920 billion VND and loan capital of 16,379 billion VND.

Thus, compared to the 2014 estimated capital of 1.8 billion USD, the total investment capital for the Dung Quat oil refinery expansion project is now nearly 0.56 billion USD lower. The previous investment target was to increase capacity from 148,000 barrels/day to 192,000 barrels/day, but according to Decision 482, it was only increased to 171,000 barrels/day.

To meet the above capacity, the refinery will be supplemented and upgraded with technology, auxiliary and peripheral workshops with 5 new copyrighted technology workshops including: gasoline processing workshop with hydrogen; diesel processing workshop with hydrogen; Alkylation workshop; hydrogen production workshop; sulfur recovery workshop. In addition, two non-copyrighted technology workshops will be added including: sour water treatment workshop and Amine regeneration workshop. In addition, other technology workshops will also be adjusted and converted.

Dung Quat Oil Refinery in Dung Quat Economic Zone in Quang Ngai province, operated by Binh Son Refining and Petrochemical Joint Stock Company ( BSR ), currently supplies about 35% of the country's petroleum.

Regarding the adjustment of implementation progress, the factory is expected to be put into operation in the first quarter of 2028.

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