BSR Selects EPC Contractor for Dung Quat Oil Refinery Expansion Project Valued at Nearly 36.4 Trillion VND
Is this the most significant turning point for Vietnam's oil refining industry in recent years as Dung Quat prepares for comprehensive upgrading with world-leading technology?
The Vietnam Oil and Gas Group (BSR) has completed the process of selecting an EPC contractor for the upgrade and expansion project of the Dung Quat Oil Refinery, marking a crucial milestone that officially moves the project into the implementation phase after years of preparation. The EPC contract signing ceremony is scheduled for July 9, 2026, opening a large-scale investment phase to enhance crude oil processing capacity and increase the competitiveness of Vietnam's oil refining industry.
Project Overview and Strategic Significance
The project has been identified by the Government as a key national project in the energy sector with total investment capital of approximately 36,397 billion VND, equivalent to about 1.489 billion USD. Upon completion, the refinery's processing capacity will increase from 148,000 barrels of crude oil per day to 171,000 barrels per day, while enhancing the ability to process various types of domestic and imported crude oil.
| Dung Quat Refinery Expansion Specifications | ||
|---|---|---|
| Parameter | Current Status | After Expansion |
| Total Investment | 36,397 billion VND | |
| Processing Capacity | 148,000 barrels/day | 171,000 barrels/day |
| Fuel Standard | Euro standard | Euro V standard |
| Crude Oil Processing Capability | Limited | Significantly more flexible |
Technology Partners and Solutions
A highlight of the project lies in the fact that the entire technology solution was established during the Front-End Engineering Design (FEED) phase with the participation of the WOOD Group from the United Kingdom. The consulting firm has integrated proprietary technologies from leading global technology corporations to ensure high operational efficiency, safety, and compliance with strict environmental standards.
| Technology Provider | Country | Role in the Project |
|---|---|---|
| Axens | France | Residue refining and gasoline hydro-treating |
| UOP | USA | Gasoline quality upgrading |
| Merichem | USA | LPG treatment and caustic system |
| KT Kinetics Technology | Italy | Hydrogen production |
| Worley Netherland | Netherlands | Sulfur recovery |
Implementation Approach and Quality Control
Different from traditional EPC projects, the EPC contractor at Dung Quat will not be allowed to change core technologies but must implement the entire approved FEED design exactly. All detailed designs related to technology must be directly reviewed by the proprietary owners, who will supervise installation and participate in commissioning before acceptance. This approach helps reduce technical risks, ensure the system achieves optimal operational efficiency after completion, and maintain product quality according to international standards.
Environmental and Market Benefits
One of the most important objectives of the project is to produce fuel products meeting the Euro V standard according to the Government's roadmap. This is a higher emission standard that contributes to reducing environmental pollution, while helping Dung Quat's products become more competitive in both domestic and international markets.
Parallel to the technical implementation process, financing arrangements are also being expedited. HSBC is coordinating ECA loan financing while PVcomBank is serving as the financial arrangement advisor, creating a financial foundation for the project to be implemented on schedule.
Strategic Importance for Vietnam's Energy Security
The expansion of the Dung Quat Oil Refinery is not merely about increasing capacity but also about enhancing adaptability to global crude oil supply fluctuations. The refinery will be able to process a much wider variety of crude oil types, reducing dependence on a single raw material source, thereby increasing the autonomy of Vietnam's energy sector.
If completed as planned, the project will contribute to strengthening national energy security, improving the operational efficiency of BSR and Petrovietnam, and promoting the development of the Dung Quat oil refining center into one of Vietnam's most important energy hubs in the coming years.