The Dung Quat Oil Refinery Plant (Source: VNA)

Hanoi (VNA) - The Ministry of Natural Resources and Environment has approved the environmental impact assessment report of a project to upgrade and expand the Dung Quat Oil Refinery, which is operated by the Binh Son Refining and Petrochemical Company (BSR).

BSR said this is an important milestone, affirming the efforts of the company and the support and direction of ministries, agencies, the People's Committee of Quang Ngai province and the Vietnam Oil and Gas Group (PetroVietnam).

According to the firm, the ratification of the report is a legal basis for BSR to consult shareholders about the approval of front-end engineering design and the estimate for the project.

The Dung Quat Oil Refinery expansion and upgrade project received an investment certificate by the Dung Quat Economic Zone Authority (DEZA) in 2014.

The 1.8 billion USD project aims to increase the plant’s annual capacity from 6.5 million tonnes of crude oil to 8.5 million tonnes. 

Besides existing products meeting international standards and the EURO 5 criteria, the project will also produce plastics, tar, A97 and A98 gasoline and special materials used in military and defence. 

The expansion project is scheduled to be completed by 2021.

PetroVietnam, the People's Committee of Quang Ngai and BSR have prepared all necessary conditions to implement the project.

By the end of February, the land clearance work had reached 99.8 percent. It is expected that on March 31, the local authorities will hand over all 108.2 ha of cleared land to the project management board under BSR.

BSR is coordinating with relevant units to finalise the capital arrangement plan for the project. It will propose policies and tools to increase revenue to the Government, as well as suggest PetroVietnam guarantee loans for the project.-VNA