Refinery centre plans pushed up for energy security

The government is fast-tracking approval of a refining and energy hub at Dung Quat Economic Zone, a $20-billion project expected to bolster Vietnam's energy security and industrial growth.

- By Nguyen Ngoc

Relevant ministries and agencies have been instructed to finalise a proposal for establishing a national refining and energy centre at Dung Quat Economic Zone in the central province of Quang Ngai, with submission for approval expected within weeks.

Authorities have also been tasked with developing specific policies to facilitate the implementation of the large-scale undertaking, signalling renewed momentum for an energy complex estimated to require more than $20 billion in investment.

The proposed venture is expected to be spearheaded by Petrovietnam and its member units, positioning the state-owned group as the core developer of what could become one of the country's most important energy infrastructure initiatives.

According to the proposal, the Dung Quat national refining and energy centre will require total investment of around $16–20 billion and will be implemented in two phases.

The first phase, scheduled before 2030, is expected to require $14–17 billion to develop core refining and petrochemical infrastructure as well as associated energy facilities. A second phase from 2030 to 2045 will involve an additional $2–3 billion to expand the complex and increase production capacity.

When completed, the project is expected to supply at least 30 per cent of Vietnam's petrol and oil demand and establish a strategic fuel reserve system equivalent to about 30 days of supply for the domestic market.