Binh Son Refining and Petrochemical (BSR), a subsidiary of Vietnam’s state oil and gas company Petrovietnam, announced on July 9, 2026 that it has awarded an EPC (Engineering, Procurement and Construction) contract worth approximately $1.49 billion for the expansion and upgrade of the Dung Quat refinery in central Quang Ngai province. The contract was awarded to a consortium of China’s Chengda Engineering and Beijing Petrochemical Engineering, according to the report.
The project is aimed at expanding capacity and upgrading facilities at the Dung Quat refinery, Vietnam’s only domestic refinery, it is reported. The construction period is set at 37 months, and upon completion the refinery’s processing capacity is expected to increase by 15.5% to 171,000 barrels per day, according to the report. The specific process technology or licensor has not been disclosed.
The EPC contract is valued at approximately $1.49 billion, with a construction period of 37 months. Following the expansion, capacity is expected to increase by 15.5% to 171,000 barrels per day, it is reported. The client is BSR (Binh Son), and the contract was awarded to a consortium of China Chengda Engineering and Beijing Petrochemical Engineering. The announcement was made on July 9, 2026.
The Dung Quat refinery is a key facility underpinning Vietnam’s domestic petroleum product self-sufficiency, and the expansion and upgrade is reported to be aimed at meeting rising domestic demand and improving aging facilities.
The continued award of large EPC contracts to Chinese engineering firms for refinery expansion and upgrade projects in Southeast Asia could influence the competitive landscape for regional refining infrastructure and the broader EPC market.
Key points to watch include the construction start date and the actual completion and startup schedule following the 37-month construction period.