Despite only starting commercial operations on May 30, 2010, Dung Quat oil refinery produced over 15.5 million tonnes of petroleum products valued at VND 227 trillion (US$11 billion) as of May 2012. The facility helps raise state budget revenue and the country’s GDP, and becomes an important element to curb inflation and promote economic development. At present, Dung Quat oil refinery is preparing for second-phase expansion to raise output capacity, diversify products and enhance product value among others.
The US$3 billion Dung Quat petrochemical refinery, a key national project, is capable of processing 6.5 tonnes of crude oil a year. The successful construction and operation of Dung Quat oil refinery are extremely important to the national energy security and the cause of national industrialisation and modernisation.
Four years after welcoming the first flow of products from the facility, Binh Son Refining & Petrochemical Co., Ltd (BSR), with the support of foreign exerts, has constantly utilised internal forces, acquire know-how, accumulated experience to operate the facility safely and stably, and mastered technologies. As of May 2012, the refinery had imported over 17 million tonnes of crude oil, produced and sold 15.5 million tonnes of petroleum products, earned revenues of nearly VND277 trillion, and paid VND39 trillion to the State Budget. At present, the Dung Quat oil refinery is operating at 105 percent of designed capacity, running above the maximum capacity with 1,000 tonnes of products a day. The facility processes about 18,000 tonnes of petroleum products daily to meet domestic market demand.
Remarking on this success, General Director Nguyen Hoai Giang said: These impressive numbers result from the tireless efforts and iron-willed determination of all BSR staff to take risks and confront difficulties and challenges.
The Dung Quat oil refinery is preparing for the second phase expansion plan with an enlargement of 134 ha (compared to current 800 ha). The expansion will boost its processing capacity from 6.5 million tonnes of crude oil a year to 10 million tonnes and turn out 8 - 8.5 million tonnes of products a year, almost 1.5 times higher than the original capacity. If the expansion is successful, the refinery will have a bigger output capable of meeting 40 - 45 percent of domestic petroleum demand, thus playing an important role in ensuring national energy security.
Explaining the importance of expansion, General Director Giang said the Dung Quat oil refinery and the polypropylene (PP) factory have formed a petrochemical refinery complex. However, this combination still has a small scale and a few products (just eight products now), and low added value. Particularly, this facility lacks supporting industries and services. The expansion plan aims to overcome current shortages, diversify products, increase added values and enlarge operating scales.
In preparation for the expansion plan, BSR signed a contract with JGC of Japan to design production upgrading plan. The contract was completed in April 2012. The expansion will need US$2.1 - 2.9 billion. To raise funds for the project, State-run Vietnam National Oil and Gas Group (PetroVietnam) now advocates selling stakes in Dung Quat oil refinery. Currently, six or seven potential investors have expressed interest in buying stakes but only three have been found serious enough, namely JX Nippon (Japan), SK (South Korea) and Petróleos de Venezuela SA (Venezuela). But, they are still studying the case.
In addition to investment mobilisation, BSR will organise bids to choose the best contractors for the upscale plan. The upgrading will take 5 - 7 years. General Director Giang said, "When the second phase expansion is completed, it will form the country’s first-ever complete petrochemical complex, which not only meets domestic demand but also eyes exportation to other countries.”
Kien Trung
Vietnamese
