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New US$1.5 Billion Large-Sized Oil Refinery to be Built in Vietnam

A consortium comprising JGC Corporation, Technip of France, Technip Geoproduction of Malaysia and Tecnicas Reunidas of Spain has been awarded the engineering, procurement and construction (EPC) contract by Vietnam Oil and Gas Corporation (Petro Vietnam) for the Dung Quat oil refinery to be constructed in Quang Ngai Province, Vietnam. The contract value is approximately US$1.5 billion, and completion is scheduled for the first quarter of 2009.

Major facilities of the refinery include an atmospheric distillation unit (148,000BPD), RFCC unit, LCO hydrotreating unit, naphtha hydrotreater, CCR, sulfur recovery unit and offsite/utilities facilities.

Vietnam is recognized as the third-largest oil producing country in South East Asia. It remains, however, reliant on imported petroleum products because no refining facility exists inside the country. The concept of this refinery was initiated in 1997, with the utmost efforts being continuously made by Petro Vietnam in examining all possible approaches in order to realize the facility. JGC and the consortium members were selected as preferred contractors in 2001, and were finally awarded the contract on May 17, 2005.

During the period through to contract award, the original plant configuration was modified to meet the current updated product specifications in light of the motorization of Vietnam. Once fully operational, the refinery is expected to meet 30 to 40 per cent of the domestic market demand and largely improve the import/export trade balance of the country.

JGC Corporation is an international engineering and construction company based in Yokohama, Japan, having multiple operating centers and executing large scale projects worldwide. JGC is currently executing projects in Nigeria, Algeria, Saudi Arabia, Oman, UAE, Qatar, China, Indonesia and other countries. Established in 1928, JGC has a strong background in lump-sum turnkey operations of both hydrocarbon and non-hydrocarbon related projects, with annual sales turnover in excess of US$3 billion.

http://www.jgc.co.jp/

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