PetroVietnam mulls expansion of Dung Quat refinery

Vietnam Oil and Gas Group (PetroVietnam) General Director Do Van Hau said that the state-run company will likely expand the first national oil refinery in Dung Quat from the current 6.5 million tons a year to 10 million tons of crude oil a year starting next year. Total cost for the expansion is expected to reach US$1 billion to US$2 billion and completion is slated for 2017. The company is actively seeking partners who will buy stakes in the refinery. Petróleos de Venezuela SA (PDVSA), Venezuela’s state oil company, has already signed an agreement with PetroVietnam while Russia’s Gazprom Neft is thinking of investing in the expansion program. Dung Quat produces daily 19,000 tons of gasoline A92, gasoline A95, as well as liquefied petroleum gas (LPG), kerosene, jet fuel, diesel oil, fuel oil and polypropylene. The US$3.054 billion facility is expected to produce 5.187 million tons this year. (October 6, 2011)