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| An engineer maintains facilities at the Dung Quat Oil Refinery. The factory will be expanded to better meet the national demand for petroleum products. — VNA/VNS Photo |
QUANG NGAI (Biz Hub) ─ A 108.2ha site has been earmarked for the expansion of the Dung Quat Oil Refinery, which is estimated to be worth US$1.8 billion to $2 billion.
Viet Nam National Oil and Gas Group (PetroVietnam) deputy general director Le Manh Hung made the announcement at a working session with authorities of this central province last October 22.
According to VnExpress online, work on the project is expected to begin early next year and be completed by 2021. PetroVietnam will submit a plan scheduling the progress of new developments to Prime Minister Nguyen Tan Dung by the end of this year.
Hung also revealed that the expanded factory would have more crude oil and product storage facilities and safety corridors.
The expansion is expected to increase the refinery's current annual output from 6.5 million tonnes to 10 million tonnes, thereby meeting 50 per cent of the national demand for refined petroleum products.
PetroVietnam may form a joint venture with Gazprom Group of Russia to implement the project and is working with Japanese consultant JGC to finalise detailed schemes.
Dung ordered Quang Ngai authorities to clear land for the expansion earlier this month while provincial People's Committee chairman Le Viet Chu said a completely cleared site would be available by the third quarter of 2016.
Site clearance will cost about VND770 billion ($36.67 million), and the province will cover a part of the expense, besides speeding up the resettlement of more than 400 households to be displaced by the project, Chu added.
The Binh Son Refining and Petrochemical Company is running the 810ha refinery, which was launched at the Dung Quat Economic Zone in 2009.
The refinery has produced roughly 30 million tonnes of products and met about 30 per cent of nationwide demand for petrol.
It has raked in VND580 trillion (US$27.23 billion) in revenues and contributed VND93 trillion ($4.37 billion) to the State budget.
Chu said the upgrade of this key national facility was needed to accelerate provincial and national socio-economic development. ─ VNS