The Dung Quat refinery upgrade project enters a new phase of development

Recently, in Hanoi, the Vietnam Refining and Petrochemical Corporation (BSR), a member unit of Petrovietnam , held a signing ceremony for the EPC and PMC contracts under the Dung Quat Refinery Upgrade and Expansion Project.

National key project enters implementation phase

The Dung Quat Refinery Upgrade and Expansion Project is a nationally important project in the energy sector, and its investment policy has been adjusted and approved by the Prime Minister in accordance with regulations. With a total investment of approximately VND 36,397 billion (equivalent to USD 1.489 billion), the project aims to increase the refinery's processing capacity from 148,000 to 171,000 barrels of crude oil per day, while also improving the processing capabilities of various crude oils, producing fuels that meet Euro V standards, and enhancing BSR 's operational efficiency in the context of the energy transition.

BSR General Director Nguyen Viet Thang: The Dung Quat Refinery Upgrade and Expansion Project not only meets immediate development requirements but is also a strategic step to enhance BSR's competitiveness for many decades to come. Photo: PVN.

According to the plan, the project will be implemented within 37 months from the effective date of the EPC contract and is expected to be operational in 2028. This is considered a strategic step to enhance BSR's competitiveness and increase its adaptability to new demands of the energy market.

Speaking at the ceremony, BSR General Director Nguyen Viet Thang said that 2026 is a particularly significant year as the country enters a new phase of development in accordance with the spirit of the 14th National Congress Resolution of the Party. In the context of the strong energy transition trend, increasingly stringent environmental standards, and growing competitive pressure, the implementation of the Dung Quat Refinery Upgrade and Expansion Project not only meets immediate development requirements but also lays the foundation for BSR's long-term development.

Mr. Nguyen Viet Thang emphasized that the project is not simply aimed at increasing processing capacity, but also at creating conditions for the factory to gradually transform towards a modern, green, and sustainable direction. The application of advanced technologies will contribute to improving resource efficiency, reducing emissions, and aligning with the national energy development orientation as well as Vietnam's green growth goals.

Modern technology provides the foundation for sustainable development

To implement the project, BSR mobilized numerous consulting firms and leading technology suppliers worldwide . The Front-End Engineering Design (FEED) was carried out by Foster Wheeler (WOOD Group - UK). This is also the same firm that participated in the design of the Dung Quat Refinery from the initial stages and has extensive experience in large-scale petrochemical projects in the region.

In the presence of leaders from central ministries and agencies, Quang Ngai province, and Petrovietnam, the NCMR Dung Quat Refinery Project Management Board - under BSR - signed the EPC contract with the consortium of contractors. Photo: PVN .

The proprietary technologies are selected from many reputable companies worldwide, such as Axens (France), UOP and Merichem (USA), KT - Kinetics Technology (Italy), and Worley (Netherlands). The selection of modern technological solutions contributes to ensuring operational efficiency, product quality, and compliance with environmental standards.

According to BSR, the entire project implementation process will be carried out based on four overarching principles: safety is the highest priority; quality is honor and prestige; progress is a commitment to the Government, Petrovietnam, and partners; and efficiency is the ultimate measure of success. The General Director of BSR expressed confidence that the project will become a landmark project celebrating new milestones in the development of Petrovietnam and the country.

According to the contract, the Chengda - BPE consortium will assume the role of EPC general contractor for detailed design, procurement, construction, installation, and commissioning based on the technologies established during the FEED phase. Previously, BSR also signed a Project Management Consulting (PMC) contract with Foster Wheeler to support management and supervision throughout the project implementation.

The signing ceremony also demonstrates the commitment of state management agencies, the Quang Ngai provincial government, Petrovietnam, BSR, and domestic and international partners to one of the largest industrial projects in Vietnam today.

BSR and the EPC contractor consortium are determined to successfully implement the NCMR Dung Quat Refinery Project. Photo: PVN.

Upon completion, the Dung Quat Refinery Upgrade and Expansion Project will contribute to enhancing domestic crude oil processing capacity, ensuring a supply of high-quality fuel, increasing adaptability to fluctuations in the international energy market, and creating momentum for the development of the Dung Quat Economic Zone and the Central region. The project also contributes to realizing the goal of making Dung Quat a national petrochemical and energy center, further affirming the role of Petrovietnam and BSR in ensuring energy security, industrial development, and sustainable growth of the country.

Petrovietnam