First Made-in-Vietnam oil products
In the early 1980s, the Party and Government initiated plans to build an oil refinery to partially meet the country’s demand for oil and petrol products. After surveys, in 1994 the Prime Minister decided to build the first refinery in the Dung Quat Industrial Zone, now the Dung Quat Economic Zone, in the central province of Quang Ngai.
The contract was carried out by Vietros – a joint venture between Vietnam and Russia, but it was put on hold for 7 years. Vietnam decided to take over the project and mobilise USD 2.5 billion from different sources to invest in the refinery. Work resumed on November 28, 2005.
The refinery has a design capacity to produce 6.5 million tonnes a year, and once it operates at full capacity, it will meet 30 percent of the country’s demand.
Built on 338 ha of land and extending over 417ha of sea , the complex has 14 technology units, 10 energy units and 16 other components. It also has 51 storage tanks for crude oil and finished products, and a 7km pipeline system to feed oil tankers. A 1.6km long and 10m tall breakwater was built to protect oil tankers from rough seas.
To build the refinery, contractors used 100,000 tonnes of material, more than 5 million metres of electric cables and a volume of steel big enough to erect 20 Eiffel towers in Paris. The main contractor, Technip (from France), selected domestic and renowned global sub-contractors to carry out the project, including Antarakoh (Singapore), Toyo-Tokyo Kyuei (Japan), Vanoord (the Netherlands), the Vietnam Machinery Erection Corporation (LILAMA), the Civil Engineering and Construction Corporation No1 (CIENCO 1), and the Petroleum Technical Services Corporation (PTSC).
The Government kept a close watch on and provided necessary assistance to ensure the project is put into operation on time. The Viet Nam National Oil and Gas Group (PetroVietnam) also helped contractors overcome obstacles and provided timely support during the implementation process.
On May 17, 2006, PetroVietnam and the Vietnam General Confederation of Labour jointly launched an exemplary role model campaign to ensure the quality and construction pace of the project. A similar campaign was launched on August 30, 2008 to count down the days to when the refinery begins operation. These campaigns were warmly welcomed by contractors and workers in every unit through practical activity.
“We had to work three shifts a day, even at night. The employer offered extra meals and presented rewards when we completed our assignments,” says Nguyen Dang Khoa, a worker in the technology unit.
At its peak, more than 10,000 employees were mobilised to work on the site, no matter what the weather.
“I still remember that during the rainy season in 2007 the company purchased 500 raincoats for workers to work on the construction site to ensure the continuity of the project,” says engineer Pham The Kien, deputy director of LILAMA 691 company.
Major milestones
On February 9, 2009, the Crude Distillation Unit – the most important facility of the refinery – started operation safely.
On February 14, 2009, first oil-based products including kerosene and diesel came out from the refinery.
Three days later, the finished products flowed to the storage tanks for use through an 8-km long pipeline system.
The refinery is scheduled to churn out other products such as A90, A92 and A95 petrol and aeroplane fuel in April. All its 14 units will be put into operation in late June.
