Dung Quat oil refinery plant: 5 years of efficient and safe operation

Strategic refinery project

Dung Quat oil refinery plant construction project is the key national oil and gas one of great importance to the social and economic development. The investment in Dung Quat oil refinery plant construction allows us to produce crude oil in the country, step by step ensures energy security, and reduces dependence on oil supplies from abroad, creates a new face in the process of developing the Central region, especially Quang Ngai Province.

Dung Quat oil refinery plant was built in two communes of Binh Tri and Binh Thuan communes, Binh Son district, Quang Ngai province in the planning of Dung Quat economic zone with deep water seaport system and sheltered bays that created a strategic position in the Central key economic region. The area after being invested and developed will play an important role in the field of security, defense as well as exchange and economic integration.

General view of Dung Quat oil refinery plant

Dung Quat oil refinery plant has been invested with over US billion, with the production capacity of 6.5 million tons of crude oil/year (equivalent to 148,000 barrels/day), meeting over 30% gasoline demand in the country. Product structure of the oil refinery plant includes: Propylene: 130,000 – 150,000 tons/year; Liquefied petroleum gas (LPG): 400,000 – 420,000 tons/year; Petrol RON 92: 1,400,000 – 1,800,000 tons/year; Petrol RON 95: 600,000 – 700,000 tons/year; Fuel JET A1/ Oil: 80,000 – 400,000 tons/year; Car Diesel: 2,900,000 – 3,200,000 tons/year; fuel oil (FO): 60,000 – 100,000 tons/year; Polypropylene plastic beads: 130,000 – 150,000 tons/year.

The main plant consists of 15 technology workshops (including Polypropilene workshop), 10 auxiliary power workshops, crude oil tank, product tank, crude oil pipeline systems and products. Auxiliary works for the plant’s operation are seaport items including offshore crude oil receiving system for vessels to 110,000DWT, product export port for vessels up to 30,000 DWT, breakwater …

The development of the petrochemical refining industry is the index to evaluate the success of every country’s industrialization because it is the key industry with fundamental role and profound impact on many aspects of the economy. Vietnam is on top of East Asia countries with oil reserves after China, Indonesia and Malaysia.

The construction of Dung Quat oil refinery plant can be seen as a crucial step towards laying the foundation for the key industry of our country, effectively solving the demand for jobs, economic restructuring, increasing revenues and developing local services from construction phase to operation and production phase. At the same time, it is the premise to promote further investment of the domestic and foreign investors into Dung Quat Economic Zone in the fields of chemical industry, mechanical industry, manufacturing and assembling, ship building and repairing, steel rolling mills, transportation, electronics, processing and other industries. With such scale and significance, the oil refinery plant is considered as the heart of Dung Quat Economic Zone. Especially, this is the first oil refinery plant invested by Vietnam National Oil and Gas Group, confirming the significant growth of the oil and gas industry of Vietnam.

The first “made in Vietnam” petroleum

At 20 p.m on 22.02.2009, at the product tank area of Dung Quat Oil Refinery Plant, a ceremony was held to welcome the first line of petroleum; Directorate for Standards and Quality (Ministry of Science & Technology) officially announced the certification of petroleum quality produced at the plant.

On 25.05.2010, the test run was successful. The plant operated 100% of the design capacity, ensuring safety, producing all kinds of products according to design and with high quality. On 30.5.2010, Vietnam National Oil and Gas Group was officially handed over Dung Quat Oil Refinery Plant by Technip Contractors and delivered it to Binh Son Refinery (BSR) for direct management, putting into commercial operation, proactive production and business of petroleum products of high quality to provide for the domestic market. 7 products of the plant were awarded Gold Medal at the International Trade Fair (Vietnam Expo - 2010), Kerosene/Jet A1 product (jet fuel) granted with the international quality certificate and officially launched to the market.

Since the commissioning to the end of December 2010, the plant had received 8.3 million tons of crude oil, produce and supply to the market 7.2 million tons of products. In 2010, since the plant was handed over, its revenue was 58.6 trillion dong, profit was over 119 billion dong and contribution to the state budget was 10.67 trillion dong.

On 6th January 2011, Dung Quat Oil Refinery Plant had the ribbon cut by the Prime Minister for official inauguration. Since Binh Son Refinery took over the plant, the average capacity of the plant had always been maintained at above 95% and following successful maintenance, the plant had always been operated at 100% capacity. Total production in 2011 was 5.45 million tons, revenue was 111.63 trillion dong, and contribution to the state budget was 14.38 trillion dong. The settlement of Dung Quat Oil Refinery Project was completed more than 25 months earlier than the requirements of the Ministry of Finance with the settlement value in the first stage of 42,818 billion dong (accounting for 99.5% of the total investment value of the project).

In 2012, the production and business activities of Dung Quat Oil Refinery Plant faced difficulty because it was stopped in 68 days for maintenance, immediate settlement of technical pending issues. However, the plant processed and sold to the market 5.6 million tons of petroleum and oil of all types, and the revenue was 127.78 trillion dong, the State budget contribution was 17.61 trillion dong.

In 2013, BSR over-fulfilled all the set targets, imported 7.3 million tons of crude oil (6.5 million tons beyond the design), produced and marketed 6,6 million tons products of all kinds, total revenue was over 154.270 trillion dong, accounting for 141% of the annual plan; the State budget contribution was 28.415 trillion, accounting for 212% of the year plan.

Automatic packaging workshop for propylene products was at Dung Quat Oil Refinery Plant.

As of 22.02.2014, Dung Quat Oil Refinery Plant has achieved international level in 560 days continuous operation without incident.

Since its operation up to now, Dung Quat Oil Refinery Plant has produced 28.7 million tons of crude oil, 26 million tons of products, with revenue of 519.61 trillion dong, State budget contribution of 81,07 trillion dong, an important contribution in ensuring the national energy security, an active participation in the economic restructuring, revenue increase and growth of the other industries and services in Quang Ngai province.

In addition to the safe, stable and efficient operation of the plant, BSR has constantly been growing and gradually matured. With a team of more than 1,400 people professionally trained in all areas, under the close guidance of Vietnam National Oil and Gas Group, the company has successfully established and been continuing to perfect the administration system in accordance with international standards such as ISO 9000, ISO 14000, OHSAS 18000, Kaizen, 5S, STOP card etc. ... to deserve the leading bird in the downstream sector of the oil and gas industry.

Motivation for future

Five years have gone since the production of the first product lines. With the achievements, Dung Quat Oil Refinery Plant Construction Project can be seen as extremely important and extremely correct strategic planning of the Party and the Government to the formation of the petrochemical industry of Vietnam as well as the policy for investment and development of key economic area of the Central region including Quang Ngai province. The successful construction and efficient production and business of Dung Quat Oil Refinery Plant has been creating a very important motivation to boost domestic and foreign investors implementing projects in the fields of machinery manufacturing industry, chemicals, mechanical engineering, ship building and repairing, steel rolling mills, transport, tourism and services

Besides the said achievements, Dung Quat Oil Refinery Plant and BSR continues to face potential challenges and difficulties which are tightly controlled, accurately forecasted and given appropriate treatment plan for absolutely safe, stable operation of the plant, ensuring product quality and well maintaining optimum capacity such as: the necessity for upgrading and expanding the plant, unpredictable fluctuations of the crude oil and product market, etc.

In 2014, BSR sets out determination for further promoting its achievement, striving to over-fulfill the assigned targets, especially finishing the second overall maintenance of the plant in less than 45 days (compared to the plan of 57 days) and successfully implementing 10 key objectives set out by the company.

Reportedly, the second plant maintenance will be performed by Vietnamese experts and engineers to confirm our capacity for technological mastery. Materials and equipment for maintenance are also available in BSR’s store, thus the cost will definitely be much cheaper than the first time.

On believing that with close, drastic guidance of competent authorities, the relentless efforts of BSR and the cooperation and support of partners as well as the generations of the oil and gas industry, all the difficulties and challenges are to be overcome so that Dung Quat Oil Refinery Plant has new achievements, on a par with the advanced factories in the region and around the world.

Source: PVN/ Vietnamenergy.vn