A US$1.8 billion project to expand Dung Quat, Vietnam’s only operational oil refinery, has been licensed.
The Dung Quat Economic Zone authorities on Wednesday granted the license to Binh Son Refining and Petrochemical Company, a PetroVietnam unit and the operator of the Dung Quat refinery, following Prime Minister Nguyen Tan Dung’s approval for the expansion.
The expansion project, which will cover 108 hectares of land and 196 hectares of water surface in the economic zone, is expected to raise the refinery’s capacity to 192,000 barrels per day (bpd), or 8.5 million tons per year, by 2022.
As the country’s first refinery, Dung Quat opened in 2009 and has the current capacity of 148,000 bpd, or 6.5 million tons per year.
Vietnam has forecast that the demand for petroleum products will reach 27 million tons per year by 2025.
Construction of the country’s second refinery, Nghi Son, began in the north-central province of Thanh Hoa in October 2013 and is expected to cost $9 billion. The refinery will have a refining capacity of 200,000 barrels per day, or 10 million tons per year, once it comes online in 2017.
Work on the third refinery, Vung Ro, started in the central province of Phu Yen last September. The $3.2 billion plant will churn out 8 million tons of fuel products a year once it is put into operation in 2017.