Vietnam’s state-owned refiner BSR (Binh Son Refining and Petrochemical) reportedly signed an EPC (Engineering, Procurement and Construction) contract for the upgrading and expansion of the Dung Quat Refinery in Hanoi on July 9. The project is valued at approximately $1.5 billion (about VND 3.6397 trillion) and aims to increase crude processing capacity from 148,000 barrels per day to 171,000 barrels per day. The EPC contract was awarded to a joint venture between China’s Chengda Engineering and Beijing Petrochemical Engineering (BPE), while the UK’s Wood was reportedly awarded a separate Project Management Consultancy (PMC) contract.
The Dung Quat Refinery, Vietnam’s first refinery, is located in Quang Ngai Province in central Vietnam and is operated by BSR under Petrovietnam (Vietnam Oil and Gas Group). The upgrade and expansion project has reportedly been designated a nationally important project and received prime ministerial approval. The project’s goals are said to be increasing crude processing flexibility to handle a wider range of crude oils and producing clean fuels that meet Euro V emission standards.
Front-End Engineering Design (FEED) was completed by the UK’s Wood, and the project reportedly adopted Axens’ (France) residue upgrading and hydroprocessing technology, UOP’s (US) gasoline quality improvement technology, Merichem’s (US) LPG treatment technology, Kinetics Technology’s (Italy) hydrogen production technology, and Worley Netherland’s sulfur recovery technology. HSBC is reportedly arranging Export Credit Agency (ECA) financing, while PVcomBank is providing financial advisory services.