Site clearance work launched for Dung Quat refinery upgrade

Site clearance work launched for Dung Quat refinery upgrade

Binh Son Refining and Petrochemical JSC and Petrovietnam Construction JSC held a ground-breaking ceremony on February 2 as part of the site clearance package for the Dung Quat refinery expansion in Quang Ngai province.

With a package value of VND369 billion ($14.2 million), Petrovietnam Construction will conduct work over 10 months at the existing Dung Quat refinery site. The site clearance will be vast, spanning over 2.7 million cubic metres of land.

The company won the contract as the sole bidder. Beyond the site clearance package, the engineering, procurement, and construction (EPC) package is open for bidding, at an estimated value of more than $1.2 billion.

The Dung Quat refinery expansion has total capital of nearly $1.5 billion. The initiative aims to increase the capacity of the refinery from 148,000 to 171,000 barrels per day. Its products will meet Euro 5 standards and diversify crude oil sources to ensure a stable supply.

After the expansion is completed, the refinery is expected to record significant gains in key product volumes. Accordingly, petrol production will rise from 65,900 to 79,700 barrels per day. Diesel will rise from 53,200 to 59,200 barrels per day. Meanwhile, jet fuel/kerosene will climb from 5,300 to 13,100 barrels.

Following the upgrade, the refinery will enhance its flexibility to process a wider range of crude oils, from sweet and light crude oil to sourer and heavier crude oil (with sulphur content in the range of 0.12-0.34 per cent). This improves production and creates greater resilience to global crude market fluctuations.

Petrovietnam Construction has engaged in the construction of Dung Quat Refinery since its earliest days, from site clearance and breakwater works to the main plant.

“We are committed to mobilising all resources, ensuring the venture's progress, and strictly complying with safety and environmental regulations. We will promptly address any issues that arise to complete the initiative efficiently and to the highest quality standards,” said Tran Quoc Hoan, general director of Petrovietnam Construction.

VIR