15:22 | 08/01/2011 Industry
(VEN) - On January 6, 2011, the Vietnam National Oil and Gas Group (PetroVietnam) organized the inauguration of the Dung Quat Oil Refinery, the first oil refinery of Vietnam, in Binh Son District, Quang Ngai Province.
The inauguration of the Dung Quat Oil Refinery
The Dung Quat Oil Refinery project reflects an important decision of the Communist Party and the Government to form the Vietnamese petrochemical industry and develop the Central Key Economic Zone. The Government has assigned PetroVietnam to implement this major national project in the Dung Quat Economic Zone of Quang Ngai Province with investment capital of more than US$3 billion. The Dung Quat Oil Refinery is designed to have a processing capacity of 6.5 million tonnes of crude oil a year to meet more than 30 percent of the domestic demand for petrol and oil.
In mid 2005, PetroVietnam signed a contract with Technip contractors' consortium to build the main plant of the Dung Quat Oil Refinery. During the implementation of the project, lots of difficulties arose related to technical design, natural condition, human resources, and especially the adverse impacts of the world economic recession in 2008-2009. With great efforts and strong determination, the project's investor as well as domestic and foreign contractors has overcome all difficulties, and construction of the project has finished after four years. The Dung Quat Oil Refinery launched the first product in February 2009 and has been put into commercial operation.
On May 25, 2010, based on trial operation results, the project's investor granted a preliminary acceptance certificate to the Technip contractors' consortium which is responsible for providing two-year warranty. On May 29, 2010, the State Council for Pre-acceptance Test of Construction Works signed an acceptance document allowing the Dung Quat Oil Refinery to be put into commercial operation. On May 30, 2010, PetroVietnam and the Technip contractors' consortium organized a ceremony to hand over the Dung Quat Oil Refinery.
The Dung Quat Oil Refinery covers 337ha of land surface and 471ha of sea surface. With designed processing capacity of 6.5 million of crude oil per year, the refinery's products include liquefied petroleum gas (LPG), petrol 92/95, kerosene, jet fuels, diesel oil for autos, fuel oil (FO), sulfur and Polypropylen (PP). Its main plant consists of 14 oil processing workshops, 10 energy facilities, crude oil reservoirs, product containers, crude oil and other product pipelines. Seaport facilities include an entry for 110,000-DWT ships, an exit for 30,000-DWT ships, and a breakwater. The PP production plant with capacity of 150,000 tonnes of products per year was designed and constructed by a group of contractors headed by Hyundai Engineering (Republic of Korea), with total investment of more than US$230 million.
From the moment it began trial operation to the end of December 2010, the refinery received about 8.3 million tonnes of crude oil, processed and supplied the marked with 7.2 million tonnes of quality products. Seven kinds of its products won the Gold Medal at Vietnam Expo 2010. Notably, Jet A1 (petrol for airplanes) has been internationally certified.
In 2010, the Dung Quat Oil Refinery created revenue of VND60 trillion and an estimated profit of more than VND237 billion, and paid VND10 trillion in taxes to the State budget. In 2011, its projections are to create revenue of VND77 trillion, a profit of VND550 billion, and pay VND15 trillion in taxes to the State budget.
The Dung Quat Oi Refinery project is believed to lay the firm foundation for the Vietnamese petrochemical industry to develop. It has improved the face of Quang Ngai Province in particular and the entire Central Key Economic Zone in general./.
Thanh Tam – Hong Ha