Dung Quat Refinery expands crude oil storage capacity by 12.5%

On August 4, Petrovietnam Refining and Petrochemical Corporation (BSR), a member of Petrovietnam, officially inaugurated the Additional Crude Oil Storage Tank Project at Dung Quat Refinery. The project marks an important milestone in enhancing the refinery’s crude oil storage infrastructure, increasing strategic reserves, and improving its ability to respond to growing uncertainties in the global energy market.

The inauguration ceremony was attended by representatives from the Ministry of Industry and Trade, Quang Ngai Provincial People’s Committee, the Dung Quat Economic Zone Authority, and BSR’s Board of Directors and Executive Management.

Delegates perform the ribbon-cutting ceremony.

In July 2024, BSR’s Board of Directors approved the investment in the construction of the new 65,000-cubic-meter crude oil storage tank. Classified as a Grade I petroleum industrial project, the construction was carried out while Dung Quat Refinery remained in continuous operation, requiring strict compliance with technical, safety, fire protection, and environmental standards.

The project was executed by the PTSC – PTSC Quang Ngai – BCA Thang Long consortium beginning in early February 2025. Thanks to close coordination among the project owner, consultants, and contractors, construction was completed more than 30 days ahead of schedule while fully meeting quality, technical, and safety requirements.

Leaders of the Quang Ngai Provincial People's Committee, BSR, and PTSC Quang Ngai perform the ceremonial valve-opening to mark the transfer of crude oil into the new storage tank.

With the new tank now in operation, Dung Quat Refinery’s total crude oil storage capacity has increased to 585,000 cubic meters. This expanded capacity enables the refinery to maintain crude oil inventories sufficient for approximately 25 days of operation and to receive an additional Suezmax crude oil cargo. As a result, the refinery is better positioned to maintain stable operations when vessel schedules change, adverse weather conditions occur, or global supply chains face disruptions.

Beyond increasing storage capacity, the project provides BSR with greater flexibility in crude oil procurement and processing. The larger storage system allows the refinery to receive larger cargoes, diversify crude oil sources, optimize crude blending strategies, reduce dependence on traditional suppliers, and take better advantage of favorable market opportunities.

BSR President & CEO Nguyen Viet Thang said the additional crude oil storage tank will enhance the company's ability to manage production and secure feedstock supply, while expanding storage capacity to help strengthen Vietnam's national energy security.

Speaking at the ceremony, BSR President and CEO Nguyen Viet Thang noted that the global energy market has been increasingly affected by geopolitical conflicts, oil price volatility, supply chain disruptions, and shifts in international trade flows. Against this backdrop, expanding crude oil storage capacity is essential not only for ensuring the refinery’s continuous operation but also for improving BSR’s ability to manage feedstock supply and production planning.

“The most significant value of this project lies in strengthening feedstock security for Dung Quat Refinery,” he said. “The new storage tank also helps reduce the risk of additional costs such as vessel demurrage and external storage.”

Delegates celebrate the project's ahead-of-schedule completion, which increased Dung Quat Refinery's crude oil storage capacity from 520,000 cubic meters to 585,000 cubic meters.

In addition to its operational benefits, the project plays an important role in supporting Vietnam’s national energy security strategy. The increased storage capacity enhances the country’s crude oil reserve capability, aligns with the Government’s policy on developing strategic petroleum reserves, and improves resilience against potential supply disruptions.

Looking ahead, BSR will continue optimizing the operation and management of its crude oil storage system while investing in further infrastructure improvements to strengthen feedstock security and maximize the efficiency of Dung Quat Refinery. The company will also continue implementing key strategic projects, particularly the Dung Quat Refinery Upgrade and Expansion Project, with the goal of enhancing competitiveness and making a greater contribution to Vietnam’s long-term energy security.

BSR