If the land source continues to be in short supply, will the national key energy project worth more than VND 36,397 billion be able to reach its destination on schedule or will it lead to a series of impacts on Vietnam's energy security?
The leveling item of the Dung Quat Oil Refinery Upgrade and Expansion Project is entering a decisive phase when the construction volume has exceeded half of the total progress. This is an important foundation to prepare for implementing the EPC bidding package, and also determines the ability to complete one of the key national projects of the energy industry.
Starting on February 2, 2026, the leveling package will be carried out by PETROCONS with a total excavation volume of more than 2.8 million m3 of soil and rock in an estimated period of 10 months. By the end of June 2026, the entire project has completed about 52% of the work volume, while the amount of soil transported to the construction site reached more than 1.24 million m3.
Result Indicators
Overall leveling progress 52%
Soil transported to the construction site is 1,241,772 m3
Progress of technology park location no4 52.4%
Digging and destroying rocky hills in the technology park 100%
Land for technology park 51.01%
Compaction meets K90 standards Nearly 44%
Safe working hours Over 181,000 hours
The technology park at location 4 is about 5.1% ahead of schedule compared to plan. The work of excavating and demolishing the soil and rock hill has been completed, while the backfill and foundation compaction items continue to be deployed at high intensity to soon hand over the clean site for the next phase of construction.
At the torch area, the removal of the organic soil layer has been completely completed and the ground compaction phase has moved on. Meanwhile, the product storage tank area is also being accelerated in construction to keep up with the overall progress.
The biggest challenge today does not lie in construction capacity but comes from the supply of leveling materials. Pho Tinh land mine has not yet completed compensation and site clearance work, while Hoa Phat reserve mine is still in the process of completing mining licensing procedures. This causes the progress of preparing new land sources to reach about 81% of the plan and poses a potential risk of material shortage during the peak period.
In addition to land resource difficulties, rising fuel prices also increase machinery operating and transportation costs. However, PETROCONS still maintains many construction jobs at the same time, increasing the quantityWorkers, motor vehicles, transport trucks and organizations worked overnight to ensure progress.
In parallel with the construction work, BSR is coordinating with the Quang Ngai provincial government to promote the settlement of procedures related to land mines, mobilize people to agree on compensation plans and soon complete licensing documents for additional material sources. This is considered a key solution to help maintain construction pace in the coming months.
The Dung Quat Oil Refinery Upgrade and Expansion Project was approved by the Prime Minister as an important national project from the end of 2025 with a total investment capital of about 36,397 billion VND, equivalent to about 1,489 billion USD. The project uses about 51.67 hectares of land, completely located within the existing factory campus, not expanding to the sea area.
Once completed, the plant's processing capacity will increase from 148,000 barrels of oil per day to 171,000 barrels per day, and all products such as gasoline, diesel and Jet-A1 jet fuel will meet Euro V emission standards according to the Government's roadmap.
Current Indicators After upgrading
Processing capacity 148,000 barrels/day 171,000 barrels/day
Total investment capital 36,397 billion VND Unchanged
Land use scale 51.67 hectares Unchanged
StandardEuro V Upgrade fuel
In addition to increasing capacity, the project also helps Dung Quat Oil Refinery improve its ability to receive many different types of crude oil, including a mixture of Azeri BTC and EPSO oil at a ratio of 53 to 47 or equivalent oils. This helps diversify raw material sources, reduce dependence on a single source, improve production and business efficiency and enhance the ability to ensure national energy security in the long term.
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