Dung Quat Oil Refinery "upgrades" crude oil reserves, sells products to contribute to maintaining national energy security

Binh Son Refining and Petrochemical Joint Stock Company (BSR) has just held a groundbreaking ceremony to build additional crude oil tanks and signed an EPC contract to upgrade and expand the product export station of Dung Quat Oil Refinery. BSR's new move not only helps stabilize production and increase competitiveness, but also contributes significantly to ensuring reserve infrastructure and maintaining national energy security.

Dung Quat Refinery currently has a processing capacity of 148,000 barrels of crude oil per day and will increase to 171,000 barrels per day after the plant expansion and upgrade project is completed. With the existing processing capacity, the plant currently has 8 crude oil tanks with a capacity of about 520,000 m3 (each tank is 65,000 m3) to help stabilize continuous production.

To contribute to meeting domestic gasoline supply (more than 30% of the domestic market) and serving production, Dung Quat Oil Refinery has just been invested by BSR to build an additional tank with a capacity of 65,000 m3 to increase crude oil storage capacity and is expected to be completed within 26 months.

Dung Quat Refinery’s crude oil tanks have equal capacities with a diameter of 69 m, a height of 22.4 m and a capacity of 65,000 m3. The tanks are constructed of carbon steel and designed with floating roofs. The tanks include a system of pipe supports, transformer stations, power supply systems for pumping stations, oil pumping stations, wastewater collection and drainage systems, etc.

Dung Quat Oil Refinery currently has 8 crude oil tanks with a total capacity of about 520,000 m3.

Investing in increasing crude oil storage capacity not only helps BSR have more crude oil storage infrastructure but also helps BSR be proactive in purchasing crude oil from many sources. Thereby, helping BSR ensure a stable source of crude oil for the production of Dung Quat Refinery products, especially in the context of many fluctuations in the world crude oil market. At the same time, it improves the ability to respond to emergency situations such as supply disruptions, oil price fluctuations or incidents affecting production and national energy security.

BSR General Director Nguyen Viet Thang commented: “Adding an additional crude oil tank with a similar capacity will help BSR optimize input materials, minimize risks and be more flexible in importing crude oil, expanding the crude oil “basket”, reducing ship storage costs, and enhancing strategic storage capacity. Thereby, helping BSR significantly improve its operational capacity and flexibility in production and business activities. This is also an important foundation for BSR to continue investing in other projects and is a step in line with the Government's policy of increasing strategic crude oil reserves and ensuring national energy security”.

The expansion of Dung Quat Refinery's crude oil storage capacity is also closely related to the national gas reserve infrastructure planning. Currently, the increase in crude oil reserve infrastructure is increasingly urgent and increasing due to the increasing demand for energy, along with the development of the economy. According to the Ministry of Finance, the national reserve level for petroleum products and crude oil is currently low compared to the target set by our country. Accordingly, in 2023, the Prime Minister also issued Decision No. 861/QD-TTg approving the National Petroleum and Gas Reserve and Supply Infrastructure Planning for the 2021-2030 period, with a vision to 2050. The main objective of the production reserve infrastructure is to ensure that crude oil, raw material and production reserves are stable, meeting at least 20 days of net imports in the 2021-2030 period, and increasing to 25 days of net imports in the period after 2030. At the same time, the national reserve infrastructure has a capacity of 1,000-2,000 thousand tons of crude oil in the 2021-2030 period and increasing to 2,000-3,000 thousand tons in the period after 2030.

The national petroleum and gas reserve and supply infrastructure planning also aims at the general goal of developing a national petroleum and gas reserve and supply infrastructure system, including strategic reserves (national reserves). At the same time, it contributes to production reserves, commercial reserves, transportation, circulation, distribution, meeting economic, technical and environmental indicators, ensuring adequate, safe and continuous reserves and supply for socio-economic development, towards security and national defense. In particular, the major goal is to ensure the country's crude oil and petroleum product reserve capacity reaches 75-80 days of net import, striving to reach 90 days of net import. Thereby, ensuring gas reserve capacity, meeting domestic market demand and raw gas for the energy and industrial sectors.

Dung Quat Oil Refinery's road product export station will be expanded from 4 stations to 6 stations to export and sell DO and Jet-A1 oil products.

In addition to investing in crude oil tanks, BSR has also signed an EPC contract for the project to upgrade and expand the existing tank truck loading station for DO (diesel) and Jet-A1 (aviation fuel) products of Dung Quat Oil Refinery. The 4 existing product loading stations at Dung Quat Oil Refinery are often used to export and sell products such as RON 92/95 gasoline, Jet-A1 and fuel oil (FO)... The product loading stations are designed with 2 loading platforms, each with a loading system to serve production on both sides. Therefore, with 4 loading platforms, Dung Quat Oil Refinery can simultaneously load many tank trucks at the same time. Thus, the upgrade and expansion from 4 tank truck pumping stations to 6 stations (at the same time) will contribute to increasing the output of DO and Jet-A1 oil products sold by road. Thereby, contributing to improving the efficiency of receiving goods of customers which is increasing day by day.

The new projects implemented by BSR have demonstrated BSR's commitment to continuously improving its product publishing capacity, aiming to ensure market demand. The projects are also part of BSR's breakthrough investment policy, aiming to create new momentum, bringing BSR to double-digit growth in the coming time.

Source: https://bsr.com.vn/?lang=vi#/bai-viet/nmld-dung-quat-nang-cap-du-tru-dau-tho-xuat-ban-san-pham-gop-phan-giu-vung-an-ninh-nang-luong-quoc-gia