BSR Completes EPC Contractor Selection for Dung Quat Refinery Expansion Project
The Binh Son Refinery (BSR), a subsidiary of Vietnam National Oil and Gas Group (PetroVietnam), has announced the successful completion of the Engineering, Procurement, and Construction (EPC) contractor selection process for the national strategic project: the expansion and upgrade of the Dung Quat Refinery.
According to the plan, BSR will officially sign the contract with the selected contractor on July 9, 2026, marking a significant milestone in the implementation of Vietnam's largest oil and gas industry project.
A Strategic National Project
The Dung Quat Refinery expansion and upgrade project is considered one of the country's key industrial projects, contributing to energy security and socio-economic development in the Central Region and across Vietnam.
The completion of the EPC contractor selection represents the final crucial step in a meticulous preparation process spanning several months, demonstrating the determination of BSR and PetroVietnam to modernize and enhance the operational efficiency of Vietnam's sole refinery.
EPC Contractor Selection Process
BSR conducted the EPC contractor selection process with seriousness, transparency, and in strict compliance with current legal regulations. The project underwent multiple evaluation phases to thoroughly assess domestic and international contractors participating in the bidding process.
Throughout this process, evaluation criteria included:
- Experience and capacity to implement similar-scale projects
- Advanced and environmentally friendly technology
- Feasible financial strategy
- Detailed implementation plan and schedule assurance capabilities
- Project management quality and occupational safety standards
Project Significance and Objectives
The Dung Quat Refinery expansion project represents a significant investment, with total estimated capital ranging from $4-5 billion. The primary objectives of the project are:
- Increase processing capacity from 6.5 million tons/year to 10 million tons/year
- Improve product quality to meet Euro 5 standards
- Enhance economic efficiency and reduce production costs
- Apply advanced, environmentally friendly technology
- Create additional employment opportunities and stimulate local economic development
Key Technical Specifications
The following table compares the key technical specifications of the refinery before and after the expansion:
| Parameter | Pre-Upgrade | Post-Upgrade |
|---|---|---|
| Design Capacity | 6.5 million tons/year | 10 million tons/year |
| Product Quality | Meets Euro 2, Euro 4 standards | Meets Euro 5 standards |
| Crude Oil Types Processed | Light and medium crude oil | Light, medium, and heavy crude oil |
| Main Products | Gasoline, diesel, kerosene, fuel oil (FO) | Gasoline, diesel, kerosene, fuel oil (FO), propylene, polypropylene |
Economic and Strategic Value
The Dung Quat Refinery expansion project delivers significant economic and strategic value:
- Reduce dependence on imported refined petroleum products
- Create a foundation for the development of Vietnam's petrochemical industry
- Contribute to domestic fuel price stabilization
- Facilitate the development of petrochemical plants dependent on raw materials from Dung Quat
- Enhance Vietnam's position in the Southeast Asian region in the oil refining sector
Implementation Timeline
According to the plan, after signing the contract with the EPC contractor, the project will be implemented through the following main phases:
- Phase 1 (2026-2027): Detailed design, site preparation, and land clearance
- Phase 2 (2027-2029): Civil construction, and equipment installation
- Phase 3 (2029-2030): Equipment installation, commissioning, and operational commencement
Future Prospects
The completion of the EPC contractor selection and preparation for contract signing marks a significant turning point in the modernization journey of the Dung Quat Refinery. Upon completion, the refinery will not only better meet domestic fuel demand but also transform into a modern oil refining production center with competitive capabilities in the region and internationally.
The project also opens up significant opportunities for domestic high-tech enterprises to participate in the supply chain and technology transfer, contributing to the development of Vietnam's supporting industries.
The expansion of the Dung Quat Refinery is not merely an industrial project but also a symbol of the sustainable development of Vietnam's energy sector, aiming for green economic development and emission reduction in the context of global climate change.
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