The Vietnam Oil and Gas Group, or PetroVietnam, will on Feb. 22 commemorate the first flow of petroleum products from Dung Quat, the country’s first oil refinery.
|In this filed photo, PetroVietnam workers check on pipe installation at the Dung Quat Refinery (Photo: SGGP)|
The refinery in the central province of Quang Ngai, has undergone a test run for weeks, and the Sunday inauguration will be broadcast live on national television, according to State-run PetroVietnam.
Government leaders and PetroVietnam executives pine high hopes that the refinery would be a catalyst to prop up the socio-economic development and the process of industrialization in the central region and the country as a whole.
The US$2.5-billion refinery, with a daily processing capacity of about 130,000 barrels of crude oil, will meet 30% of the country’s demand.
It is designed to monthly supply almost 150,000 tons of gasoline, 240,00 tons of diesel, about 23,000 tons of LPG, more than 8,000 tons of propylene, some 30,000 tons of air petrol Jet-A1, and around 25,000 tons of F.O oil.
The refinery is scheduled to operate fully by this August, and is expected to supply a total of 2.6 million tons of products this year.
The idea for the oil refinery was initiated in 1993 when then Prime Minister Vo Van Kiet surveyed Quang Ngai Province and the central region. One year later, he and the Government then decided to develop Dung Quat Industrial Park, which now is Dung Quat Economic Zone, including an oil refinery and petrochemical complex. After a host of debates, work started on the mammoth project.
According to PetroVietnam, Nghi Son in the northern province of Thanh Hoa and Long Son in the southern province of Ba Ria-Vung Tau are the sites for the oil refineries to be up and running in the country in the next decade.
PetroVietnam is working with its foreign partners over the Nghi Son oil refinery project as site clearance started in May last year. First-phase operation is set to start by 2013, with initial refining capacity of 10 million tons per year.
Meanwhile, the Long Son refinery is scheduled to start operation in 2015 or a little later with annual processing capacity of also 10 million tons of crude oil.