The Vietnamese company Binh Son Refining and Petrochemical, a subsidiary of the state-owned group PetroVietnam (PVN), has announced plans to expand the capacity of its Dung Quat oil refinery, located in central Vietnam, from 148 kb/d to 171 kb/d (or 6.5 Mt/year to 7.6 Mt/year).
The company will take US$754m worth of loans to carry out the project, which is expected to cost US$1.25bn. The loans will thus account for about 60% of the funding needed to raise the refinery’s capacity, while the Vietnamese government will infuse equity for the remaining US$503m. The expansion project is expected to take 37 months, with completion scheduled by the first quarter of 2028. The maintenance of the refinery is expected to start in 2024.
Vietnam currently has a refining capacity of 330 kb/d, spread over two refineries: the aforementioned Dung Quat refinery, commissioned in 2009, and the Nghi Son refinery (200 kb/d), which started production in 2018.