Petrovietnam gets funding for Dung Quat refinery

The Vietnam Development Bank has awarded a credit of $1 billion to Vietnam's state-owned Petrovietnam to finance construction of the country's first refinery at Dung Quat.

Eric Watkins
Senior Correspondent

LOS ANGELES, Feb. 13 -- The Vietnam Development Bank has awarded a credit of $1 billion to Vietnam's state-owned Petrovietnam to finance construction of the country's first refinery at Dung Quat.

Petrovietnam General Director Tran Ngoc Canh said the loan would be used mainly to pay the consortium carrying out the refinery's engineering, procurement, and construction work (EPC). In 2005, Petrovietnam reported that major work contracts were in place for constructing the 140,000 b/d refinery (OGJ Online, Aug 25, 2005).

It was reported that Technip engineering centers in Paris and Kuala Lumpur would carry out the EPC contract, while Japan's JGC and Spain's Tecnicas Reunidas would build the crude oil and product tanks, oil pipelines, and an offshore oil delivery system.

The Dung Quat refinery, scheduled for completion in 2009, is under construction in the Binh Son District of the central province of Quang Ngai.

On completion, it will process 6.5 million tonnes/year of crude oil to meet about one third of the country's requirements for gasoline, diesel fuel, fuel oil, liquefied petroleum gas, and kerosine.

Contact Eric Watkins at hippalus@yahoo.com.

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