Expansion cost of Vietnam’s Dung Quat refinery to reach US$1.5 to 2 billion

Binh Son Oil Refining & Petrochemical Co. Ltd. (BSR), which operates the Dung Quat oil refinery, said that raising the capacity of Vietnam’s first oil refinery from the current 6.5 million tons of crude oil per year to 10 million tons per year will cost US$1.5 billion-2 billion. BSR is currently waiting for the results on of a study being conducted by its Japanese consultant JGC, on the expansion project. Vietnam Oil and Gas Group (PetroVietnam), which is investing in the expansion program, wants to use 100% sour crude oil imported from the Middle East and Venezuela. The facility is currently fed with sweet oil supplied by the local Bach Ho field. The Dung Quat oil refinery’s existing output of 19,000 tons of petroleum products a day meets 33% of domestic fuel demand. Upon completion of the expansion program by the end of 2015 or early 2016, the facility is expected to meet 40-50% of local fuel requirements. (February 14, 2012)