French, Korean teams race for $1.8bn Vietnamese refinery expansion

Two companies are in the race for a $1.8bn contract to upgrade and expand Vietnam’s Dung Quat refinery in the central province of Quang Ngai.

The refinery, which is owned by the Binh Son Refinery group, was built by French engineer Technip and completed in February 2009. The aim is to increase capacity 145,000 barrels a day to around 190,000, and to allow the refinery to process more types of crude oil.

Technip is heading one of the consortiums that have entered bids for the work. The other is led by  Hyundai Engineering and Construction of Korea.

The winner of the EPC contract is expected to begin work in August next year.

Binh Son originally agreed to give the expansion work to Russia’s Gazprom Neft, but this fell through in 2016. As well as the engineering work, Gazprom was to acquire a 49% stake in Binh Son, which is a subsidiary of state-owned energy company PetroVietnam.

Dung Quat is one of Vietnam’s two refineries, together with the 200,000 barrel Nghi Son plant.

Image: Dung Quat refinery (Haisonputin/CC BY 3.0)

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