Dung Quat Oil Refinery to increase capacity

May 08, 2023 | 20:00

(0) user say

Deputy Prime Minister Tran Hong Ha signed Decision No.482/QD-TTg on May 5 approving the investment planning to upgrade Dung Quat Oil Refinery located in the central province of Quang Ngai to increase output.

Dung Quat Oil Refinery to increase capacity to 171,000 barrels per day

The expansion, invested by Binh Son Refinery and Petrochemical JSC (BSR), will increase the capacity of the refinery to 171,000 barrels per day from the existing 148,000 barrels.

The total investment to upgrade the refinery is VND31.23 trillion ($1.25 billion), 40 per cent of which is BSR’s equity of $503 million, and 60 per cent comes from loans.

The products will meet EURO V standard, the Vietnamese government's requirements on environmental standards, along with domestic demands on petrochemical refineries, simultaneously contributing to promoting the socioeconomic growth of the country in general and the central region.

To upgrade the refinery, PetroVietnam proposed the prime minister allow the corporate income tax mechanism for BSR to be similar to the mechanism applied for the upgraded facility.

Once completed, the new facility will be under a corporate income tax rate of 10 per cent within 30 years. However, for the first four years the tax is zero, and in the following nine years it will be 5 per cent.

The schedule to implement the engineering, procurement, and construction contract is 37 months and the new facility is expected to go into operation in the first quarter of 2028.

The investor started preparation for the refinery’s operation some years ago. In August 2015, BSR signed a contract with UK-based Amec Foster Wheeler Energy Ltd. to outline a master design for the Dung Quat Oil Refinery expansion project.

The Dung Quat Oil Refinery, which began operations in May 2010, was designed to process 6.5 million tonnes of crude oil per year from the Bach Ho oil field.

Binh Son Refinery reports $130 million in profit in first half

Binh Son Refinery and Petrochemical JSC (BSR), a wholly-owned subsidiary of PetroVietnam, acquired VND3 trillion ($130.43 million) in profit in the first six months of 2021 thanks to the soaring price of West Texas Intermediate (WTI) oil.

Dung Quat Refinery exceeds design capacity to meet demand

Binh Son Refining and Petrochemical JSC (BSR) is operating Dung Quat Oil Refinery at 109 per cent of the refinery’s design capacity to offset the lack of petroleum and oil in the market.

More oil refineries required in Vietnam

Highly volatile petroleum prices in the global market and the fact that the current domestic supply can only meet about 70 per cent of the demand have underlined the need for more refineries in the country.

By Ha Vy

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional