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Two consortiums bidding to expand Dung Quat refinery

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Hydrocarbon Engineering,

As reported by Reuters, two consortiums led by Hyundai Engineering & Construction and Technip Italy are bidding for a US$1.8 billion project to upgrade and expand the Dung Quat refinery in Vietnam, the owner of the plant said on Thursday.

Binh Son Refining and Petrochemical said in a statement the project would raise the refinery’s capacity by 30% to 8.5 million tpy of crude oil, or 170 000 bpd.

A company source told Reuters on Thursday the company would name the winner of the bid in about a month.

The source added that the refinery was running at full capacity after it was restarted more than a week ago following a 50-day shutdown for maintenance.

“The expansion and upgrade of the refinery is a necessary and urgent task to ensure the flexible, stable and efficient operations of the refinery, enabling it to process more types of crude oil,” the company said in the statement.

The 130 000 bpd refinery in the central province of Quang Ngai started commercial operations in 2009. It was originally designed to process mostly crude oil from Vietnam’s Bach Ho field, whose production has peaked.

The Hyundai E&C-led consortium also consists of Hyundai Engineering Co., according to Binh Son. The other consortium includes Technip Italy, Technip Geoproduction, Technip France, PetroVietnam Technical Services Corp. and Lilama Corp.

Binh Son said work on the expansion and upgrade of the refinery would start in August 2021.

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