PetroVietnam asked to finalise oil refinery expansion project

Dung Quat oil refinery project is scheduled to be expanded with an investment of $2 billion. – Photo Nangluongvietnam

HA NOI (Biz Hub) – Deputy Prime Minister Hoang Trung Hai has asked the Viet Nam National Oil and Gas Group (PetroVietnam) to complete the Dung Quat Oil Refinery expansion project proposal, reports Vneconomy.

According to the Deputy PM's order, PetroVietnam is responsible for giving full explanation for the urgency of the project, and for evaluating and comparing the efficiency of different measures that can be taken to expand the oil refinery.

Hai also asked PetroVietnam to calculate the efficiency of the expansion if the project is granted investment priority, and in case it is not.

He suggested that PetroVietnam should consider adding a crude oil storage facility to the expansion project.

The project proposal must be submitted to the Ministry of Industries and Trade (MoIT) for further examination before November 11.

The MoIT has been asked to set up a committee with representatives from the relevant branches and the Quang Ngai People's Committee to scrutinise the Dung Quat oil refinery expansion project, and report to the Prime Minister in November.

The People's Committee has also been asked to be ready with its plans for land clearance, resettlement and compensation for local residents, to allow implementation of the project as soon as the proposal is approved.

Once the expansion project is completed, the Dung Quat oil refinery's capacity will be increased to 10 million tonnes of crude oil input per year from the current level of 6.5 million tonnes.

This move is included in the scheme to develop petrochemicals because if the input is maintained at 6.5 million tonnes, the output will be about 6 million tonnes, and hence, there will be almost no raw material for petrochemicals.

The investment for the expansion project is estimated to be US$1.8 million to $2 billion.

PetroVietnam is also discussing the sale of 49 per cent of the shares of the oil refinery to foreign partners, including Gazprom Group of Russia. – VNS