Vietnam’s Binh Son Refining and Petrochemical Company (BSR) has begun a $600 million financing process for the expansion and upgrade of the Dung Quat refinery, it is reported. The total investment for the expansion project is approximately $1.489 billion, of which the EPC (Engineering, Procurement and Construction) contract portion accounts for around $1.2 billion.
The project will expand Dung Quat refinery’s crude processing capacity from 158,000 barrels per day (b/d) to 171,000 b/d, it is reported. The EPC work is being led by a China-based Chengda-BPE consortium, while a new hydrogen production unit (with a capacity of 22,676 Nm³/h) will apply the proprietary NX Reform™ steam methane reforming (SMR) technology of KT-Kinetics Technology (KT Tech), a subsidiary of Italy’s Maire Tecnimont group, it is reported. The hydrogen unit contract was signed in October 2024 and is included as part of this expansion package.
Vietnam has continued to pursue the modernization of the Dung Quat refinery to raise domestic refining self-sufficiency and improve the processing capacity and energy efficiency of aging facilities, it is reported. Dung Quat, Vietnam’s first refinery, is expected to further contribute to the stability of domestic petroleum product supply through this expansion. Implications for Korea’s Industry
As Italian and Chinese firms expand their technology and EPC involvement in Southeast Asian refinery expansion projects, Korean firms are also encouraged to look for opportunities to win specialized process packages such as hydrogen production units.
The timing of the $600 million financing close, the EPC effectiveness date, and whether the 2028 operational target is met are cited as points to watch.