General Director Le Manh Cuong: PETROVIETNAM focuses its resources on building an industrial and energy ecosystem in Dung Quat

At the meeting, Deputy Prime Minister Pham Gia Tuc assessed that, after the merger, Quang Ngai province has a vast development space, stretching from the highlands and midlands to the coastal areas, islands, and border regions. Specifically in the Dung Quat Economic Zone, it is necessary to continue to leverage strengths in industry, petrochemicals, steel, and energy. At the same time, it is crucial to promote the development of downstream petrochemicals, chemicals, mechanical engineering, and supporting industries.

A general overview of the working session

During the 30 years of the formation and development of the Dung Quat Economic Zone, PETROVIETNAM and its member units have carried out many important production and investment activities, most notably the Dung Quat Refinery, managed and operated by the Vietnam Petroleum Corporation (BSR).

Speaking at the meeting, General Director of PETROVIETNAM Le Manh Cuong reaffirmed the long-standing bond between the Group and Quang Ngai province. He also pledged that member units would always stand alongside and contribute to the development of the locality.

Focus resources on forming an industrial-energy ecosystem

According to PETROVIETNAM General Director Le Manh Cuong, the Group is focusing its resources on building an industrial and energy ecosystem in the Dung Quat Economic Zone with the Dung Quat Refinery as the core. Priority is given to developing projects in deep processing, petrochemicals, biofuels, and crude oil storage infrastructure. This orientation not only contributes to improving the operational efficiency of existing facilities but also gradually forms a linked value chain from oil refining, petrochemicals, chemicals, biofuels to downstream industries, thereby creating new momentum for the Dung Quat Economic Zone and contributing to the socio -economic development of Quang Ngai province.

The focus in the next phase is the Dung Quat Refinery Upgrade and Expansion Project, with a total investment of approximately US$1.5 billion, increasing processing capacity from 6.5 million tons to 7.5 million tons of crude oil per year. After the EPC contract is signed in July 2026, the project will enter its peak implementation phase to prepare the land for subsequent phases. PETROVIETNAM hopes that Quang Ngai province will continue to pay attention to and support the resolution of difficulties and obstacles related to land clearance and the supply of leveling materials, creating favorable conditions for the project to be implemented on schedule.

Furthermore, leveraging the infrastructure advantages of the Dung Quat Economic Zone and the existing refinery, and with the interest from foreign partners, PETROVIETNAM is coordinating with potential partners to research and invest in projects for deep processing and high value-added products.

General Director of PETROVIETNAM, Le Manh Cuong, provided information on the operational situation and projects that PETROVIETNAM is actively implementing in Quang Ngai.

According to General Director Le Manh Cuong, policy mechanisms play a crucial role in developing projects and deep processing. In the coming time, PETROVIETNAM will continue to work alongside ministries, sectors, and Quang Ngai province to finalize mechanisms and policies for the development of the National Petrochemical and Energy Center in Dung Quat, creating a favorable environment to attract international investors.

The nationwide rollout of E10 bioethanol is opening up new opportunities for the Dung Quat Ethanol Plant to recover and stabilize its operations, contributing to meeting the demand for raw materials for blending biofuels.

To stabilize the raw material supply, PETROVIETNAM recommends that Quang Ngai province develop a concentrated cassava growing area with competitive prices. This will not only help improve the efficiency of the Dung Quat Ethanol Plant, but also increase income for local people and promote sustainable agriculture .

Based on market demand, raw material supply capacity, and business efficiency, PETROVIETNAM will also research and consider cooperating to restore several other ethanol plants in the country, contributing to the formation of a biofuel value chain within the Group's energy ecosystem.

Research on the National Crude Oil Reserve at Dung Quat

Another important task that PETROVIETNAM is actively researching and implementing is the National Crude Oil Reserve Project in the Dung Quat Economic Zone, as directed by the Government. The project is expected to contribute to strengthening the national crude oil reserve capacity, ensuring energy security, and maintaining a stable supply of raw materials for refineries in situations of significant market fluctuations.

According to the research orientation, the project is expected to have a capacity of 1 million tons of strategic crude oil reserves and a portion for commercial operations, which will be specifically determined during the feasibility study phase. PETROVIETNAM is working with potential partners, aiming to sign a framework agreement in early September 2026, complete the feasibility study by the end of Q2 2027, finalize investment procedures, select contractors, and commence EPC implementation from early 2028.

The establishment of a crude oil reserve at Dung Quat, along with the Dung Quat Refinery and existing infrastructure, will create another important component in the oil and gas-energy value chain. At the same time, it will enhance the ability to proactively secure raw materials and respond to fluctuations in the energy market.

Towards the National Petrochemical and Energy Center in Dung Quat

To realize the above objectives, PETROVIETNAM hopes to continue receiving the attention, guidance, and support of the Government, ministries, and Quang Ngai province. We look forward to continuing our partnership and contributing to making the Dung Quat Economic Zone a key national center for petrochemicals, energy, and industry.

PETROVIETNAM has determined that Dung Quat is not just a location for an oil refinery, but will gradually become an integrated industrial-energy ecosystem, in which oil refining is the core, deep processing and petrochemicals are the growth drivers, biofuels are a new development area, and crude oil storage infrastructure is a crucial component ensuring energy security.

At the meeting, the ministries and agencies unanimously agreed that Quang Ngai is facing new opportunities for development. Regarding the National Petrochemical and Energy Center in Dung Quat, the Ministry of Industry and Trade supports the development of mechanisms and policies for the Center; the Ministry of Finance was assigned to lead the drafting of a resolution to be submitted to the National Assembly.

In his concluding remarks, Deputy Prime Minister Pham Gia Tuc requested Quang Ngai to innovate its growth model based on science, technology, innovation, digital transformation, and green transformation; to develop modern manufacturing industries, supporting industries, energy, and high value-added sectors.

In his concluding remarks, Deputy Prime Minister Pham Gia Tuc emphasized the need for Quang Ngai to focus on developing the petrochemical, chemical, mechanical engineering, supporting industries, and energy sectors.

In this context, the operation of existing large industrial facilities continues to play a crucial role. The Deputy Prime Minister requested the maintenance of stable operations at the Dung Quat Refinery and the Hoa Phat Iron and Steel Production Complex. Simultaneously, he called for the development of downstream petrochemical, chemical, mechanical engineering, supporting industries, and energy sectors.

Specifically, Quang Ngai province is urged to promptly prepare the initial steps for investing in the National Petrochemical and Energy Center in the Dung Quat Economic Zone, proactively coordinating with the Ministry of Finance and relevant agencies to ensure progress.

With an established industrial foundation, the existing Dung Quat Refinery, the Dung Quat Refinery Upgrade and Expansion Project, the development orientation of downstream petrochemical industries, and the plan to build a national crude oil reserve are creating additional components to gradually complete the industrial-energy value chain. In the future, the National Petrochemical and Energy Center will be a highlight in the overall new development of Quang Ngai and the entire Central region.

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