Currently, Dung Quat Oil Refinery has been in stable and efficient operation at 105-107% of its capacity. However, the plant is facing tremendous challenges. An unique solution to do right at this moment is to make investment into upgrading and expanding the plant for sustainable development. Otherwise, in the near future there will be more difficulties.

The most important factor is to meet the quality standards and the emission standards for combustion engines - vital element to improve market competitiveness in the future. Under Decision No 49/2011 issued by the Prime Minister on the roadmap for application of Euro 4 emission standards for manufactured, assembled, imported cars and two-wheeled motor vehicles, taking effect on Januray 1st 2017 and Euro 5 standards taking effect on January 1st, 2022. Currently, the products from Dung Quat Oil Refinery can meet the Euro 2 standards. Meanwhile, just a few years to go, when the Nghi Son Oil Refinery and Vung Ro Oil Refinery are in operation, with their Euro 4 standard products, by that time products of Dung Quat Oil Refinery will have a difficult competition.

Moreover, countries in the region have begun to apply the Euro 4 standard and heading to Euro 5 standard. It means that not only domestic market, but also the international markets are putting pressure on the needs to upgrade the technology so that the products could meet the environmental protection standards. Thus, the plant needs  upgrading to produce Euro 5 standard products.

After more than 6 years of plant operation and since oil extraction in Bach Ho to date, the Bach Ho oil yield begins to decline, in the near future, the oil will not be sufficient to meet the input requirements of the Dung Quat Oil Refinery plant. Currently, Dung Quat Oil Refinery is negotiating with partners and syppliers to buy crude oil from Brunei, Russia, the Middle East. In the future, crude oil from Russia and the Middle East is the main oil source to stabilize the plant operations and improve its competitiveness.

In January 2015, BSR Company announced the upgrade and expansion of Dung Quat Oil Refinery Plant. To date, BSR company has developed specific action plans to implement the solutions to shorten the duration of upgrade and expansion of Dung Quat Oil Refinery Plant.

Trong Tan