Energy storing facilities in Vung Ro Bay, Phu Yen. The south central province has granted a licence allowing investors to double capacity of the planned Vung Ro oil refinery project. — Photo vov.vn

PHU YEN (Biz Hub) ― Vung Ro Petroleum Ltd has received a modified investment licence from the People's Committee of central Phu Yen Province for the development of the planned Vung Ro oil refinery project.

The committee allowed project investment capital to be increased from US$1.7 billion to $3.18 billion, which will double the plant's annual output to eight million tonnes, following Government approval.

The refinery would be built in Hoa Tam Industrial Zone in Nam Phu Yen Economic Zone using a land area of about 680ha and water surface of 500-1,300ha, instead of on more than 185ha in Hoa Tam and Hoa Xuan Nam communes.

The investing company petitioned for the adjustments based on market demand, since the project was first licensed in 2007.

Addressing the licensing ceremony on October 6, Deputy Prime Minister Hoang Trung Hai said the new move marked an advance for the large-scale project, which would play an important role in the nation's energy industry development and the socio-economic progress of the south-central region.

He urged relevant parties to promptly implement the next steps of the project.

On Sunday, Vung Ro Petroleum signed an overall design contract with Japan's JGC Group, and entrusted this company as an EPC (engineering, procurement and construction) contractor.

The province was concentrating on clearing ground and building traffic, water and electricity infrastructure for the project, according to the local Department of Planning and Investment.

Construction of the refinery could possibly begin in November, an unnamed People's Committee official told VnEconomy.

As planned, the plant would be completed within four years and would annually produce 90,000 tonnes of liquefied petroleum gas, 487,000 tonnes of RON 92 gasoline, 1.6 million tonnes of RON 95 gasoline, 325,000 tonnes of jet fuel, 2.3 million tonnes of diesel and 1.4 million tonnes of fuel oil.

Vung Ro Petroleum is a joint venture between British Virgin Islands' Technostar Management Ltd and Russia's Telloil Group. ― VNS