Petromacareo – Dung Quat Oil Refinery Expansion – Quang Ngai - Project Profile

Petromacareo – Dung Quat Oil Refinery Expansion – Quang Ngai - Project Profile

Synopsis

"Petromacareo – Dung Quat Oil Refinery Expansion – Quang Ngai - Project Profile" contains information on the scope of the project including project overview and location. The profile also details project ownership and funding, gives a full project description, as well as information on contracts, tendering and key project contacts.

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Summary

The Petromacareo (Petromacareo), a joint venture between Vietnam Oil and Gas Group (Petrovietnam) and Gazprom, is planning to undertake the construction of Dung Quat Oil Refinery Expansion project in Quang Ngai, Vietnam.

The project involves the expansion of the existing refinery from the current 6.5 million tons to 8.5 million tons per annum on 108ha of land and 196ha of the water surface in the economic zone. It includes the construction of hydro-treater and catalytic reformer (CCR) units, storage facilities and the installation of a grass-roots vacuum flash, a distillation unit, a visbreaker and safety systems.

Binh Son Refining and Petrochemical Company (BSR) operates and manages the Dung Quat Oil Refinery. JX Holdings, Inc. and SK Energy Co. Ltd. have been appointed as the pre-feasibility study consultants and JGC Corporation as the feasibility study consultant for the project.

In August 2010, the government of Vietnam approved the plan to expand Dung Quat oil refinery. In May 2011, Petroleos de Venezuela SA (PDVSA) joined PetroVietnam with a 49% stake in the project but later withdrawn.

In December 2012, JX Nippon Oil & Energy Corporation, a unit of JX Holding, declined to participate in the expansion of the project.

In September 2013, Gazprom signed a memorandum of understanding (MoU) with PetroVietnam for the project implementation with 49% stake.

In December 2014, the Petromacareo received approval from the federal and provincial government for the project development.

In August 2015, Amec Foster Wheeler was appointed as FEED contractor.

On September 22, 2015, a consulting contract awarded to Quad Consulting Inc. and Giac Thanh Co. Ltd. According to the contract, the companies will oversee and supply consulting services to the front-end engineering design (FEED) phase of the project.

Capital structure for the project accumulating to 30% of its total capital is set to come from investor's equity and the rest 70% through loans.

In December 2017, BSR issued initial public offering (IPO) for raising funds to develop the project.

BSR is in the process of raising funds through equity and simultaneously is in plans to hire the consultants to arrange funds in the form of export credit (ECA) loans. Subject to the achievement of financial closure, BSR will commence the construction works and expected to complete by 2022.

Scope

The project involves the expansion of the existing refinery from the current 6.5 million tons to 8.5 million tons on 108ha of land in Quang Ngai Province, Vietnam.

The US$1,820 million project includes the following;

1. Construction of hydro-treater and catalytic reformer (CCR) units

2. Construction of storage facilities

3. Installation of a grass-roots vacuum flash

4. Installation of a distillation unit

5. Installation of a visbreaker

6. Installation of safety systemsReasons To Buy

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