Map of Dung Quat Oil Refinery in Quang Ngai Province. Construction of the EPC 1+4 and EPC 2+3 packages of Dung Quat Oil Refinery starts on November 28, 2005. Finishing the painting of pipes that lead refined products from the tanks to the harbour for export. Drilling for pilings of the EPC 1 for the construction of the high-tech workshops and auxiliary facilities inside the refinery. Installing the sea water cooling pipes for the refinery. Construction of the foundation for crude oil tanks (EPC 2 package). Unloading imported equipment for Dung Quat Refinery at Dung Quat Habour No.1. The tower in the Propylene Recovery Unit of Dung Quat Oil Refinery. A corner of Dung Quat Oil Refinery. In the distance are tanks to store crude oil (EPC 2 package), the Power Plant and the Transformer Station No.1. At one time Quang Ngai Province was known as a sugar center of Vietnam , but these days, mention of oil refinery and this province comes to mind.“In the past, An Mountain and the Tra River were symbols of Quang Ngai Province , which has now been replaced by the Dung Quat Oil Refinery,” said Nguyen Xuan Hue, Chairman of Quang Ngai Provincial People’s Committee. On October 25, 2005, the ground breaking of Dung Quat Oil Refinery was launched. On November 28, 2005, construction of the EPC 1+4 and EPC 2+3 packages of Dung Quat Oil Refinery project started in Binh Son District, Quang Ngai Province , which was expected to be complete in 44 months. A clock that counted down the time was set up right at the gate of the plant, where more than 20,000 people of 45 nationalities worked together. Dung Quat Oil Refinery was built on an area of 338ha on the ground and 471ha on the sea surface belonging to the 14,000ha Dung Quat Economic Zone. Total investment in the refinery is over 2.5 billion USD, with the main investor being the Vietnam National Oil and Gas Group (PetroVietnam). With projected capacity of 6.5 million tonnes of crude oil per year (about 148,000 barrels a day), in phase one, 100% of crude oil from Vietnam’s Bach Ho (White Tiger) oilfield will be processed; and in phase two, 85% of Bach Ho crude oil and 15% from Dubai’s sour crude. When operative, Dung Quat Oil Refinery will meet 30% of domestic demand on gasoline and contribute 2 trillion VND annually to Quang Ngai Province ’s budget. In the control room – the brain of the refinery – we talked with Nguyen Hoai Giang, Deputy General Director for Techniques and Deputy Chief of the test runs at Dung Quat Oil Refinery. He said: “The plant has state-of-the-art technology in place, outranking that used in Southwest Asia . Training engineers to operate the plant is urgent. Currently Vietnamese engineers and workers are involved in management work, supervising EPC(engineering/procurement/construction) contractors at the construction site and undertaking the test runs.” Over the past years, big changes have taken place at this huge construction site. Engineers, experts and workers have met every challenge thrown at them to complete the construction on schedule in the poor area of Central Vietnam. Dinh Van Ngoc, Deputy General Director of Binh Son Petrochemical Refinery Ltd. Company, which is the direct manager and operator of Dung Quat Oil Refinery, shared with us his comments: “By the end of 2008, all EPC 1+4 and 2+3 packages of the project were implemented along with their schedule after 42 months, 2 months ahead of schedule.  Purchasing of equipment were completed, 98.4% of the construction was fulfilled. Completion of construction of major contracts reached 98.5%. The plant has completed training for 1,046 qualified employees who can meet any technical requirement. Agreements and contracts in principles were signed between the plant and domestic and international businesses, which will supply crude oil, merchandise, catalysis, services of transportation, maintenance and habour, and emergency relief in case of oil spillage, etc., during the test runs and official operation. As scheduled, on February 25, 2009 Dung Quat Oil Refinery will turn out the first batch of products “Made in Vietnam”. At present, Vietnam has to import 13 tonnes of petrol a year, so operation of Dung Quat Oil Refinery as scheduled is of great significance to the national economy. Apart from meeting 30% of domestic demand on fuel, this project made a solid foundation for Vietnam ’s oil refinery industry. Happy with this significant project, PetroVietnam’s Deputy General Director and Head of Dung Quat Oil Refinery Project Management Board, Truong Van Tuyen, said: “When operating at full capacity (6.5 million tonnes of crude oil a year), the plant will have an annual turnover of over 3.5 billion USD. This will help change dramatically Quang Ngai Province , which is imbued with rich revolutionary traditions.” Chairman of Quang Ngai Provincial People’s Committee Nguyen Xuan Hue seemed to be more excited when he shared information with journalists covering the news. He said: “ Quang Ngai Province will meet innumerable difficulties without operations of Dung Quat Oil Refinery, which alone contributed 47% of the province’s budget in 2008. It will participate in satisfying the demands on jobs, shift of economic structure, increase of revenue and development of local tourist services. The refinery will attract more foreign investors and become the main force for economic development of the province and the entire central region, marking a milestone in the region’s advancement.” When we left Dung Quat Oil Refinery, it was in its final preparation, with 80,000 tonnes of crude oil from Bach Ho oilfield stored in the tanks. It is expected that the plant’s first batch of oil products will be turned out on February 25, 2009. Vietnamese engineers and workers exchange experience with foreign experts at the RFCC workshop. Dau Thi Thuy Lan, a specialist from RSI Simcon Company trains operators with high-tech model of world standard in petrol-chemistry. Test runs at RFCC workshop.   In the control room of Dung Quat Oil Refinery. Panoramic view of the breakwater (EPC 5A package) and the Export Habour (EPC 5B) of Dung Quat Oil Refinery. Checking the electrical equipment at the Transformer Station No.1 of Dung Quat Oil Refinery. Installing the Single Point Mooring (EPC 4 package) at Viet Thanh Bay. Installing mooring buoy for crude oil pumps (EPC 4 package): the Single Point Mooring (SPM) and the pipes leading crude oil from offshore to the mainland.                                                 Night at Dung Quat Oil Refinery (RFCC workshop).                         “The decision to build Dung Quat Oil Refinery by the Vietnamese Government has provided comprehensive efficiency to the entire region. When operative at full capacity of 6.5 million tonnes of crude oil a year, the plant will have an annual turnover of over 3.5 billion USD”. (Truong Van Tuyen, PetroVietnam’s Deputy General Director and Head of Dung Quat Oil Refinery Project Management Board) - Dung Quat Oil Refinery project is implemented by contractors from Technip Group, including Technip France (France), Technip Geoproduction (Malaysia), JGP (Japan) and Tecnicas Reunidas (Spain) led by Technip France. In addition, there are more than 40 Vietnamese and foreign sub-contractors such as Van Oord ( Holland), Toyo ( Japan ), Vietnam Petroleum Technical Services Corporation (PTSC), Petrol Vietnam Constructions Joint-Stock Corporation (PVC), Civil Engineering Construction Corporation No.1 (CIENCO 1), Vietnam Machinery Erection Corporation (LILAMA), Vietnam Construction Machinery Corporation (COMA), Vietnam Construction and Import-Export Corporation (VINACONEX), Song Hong Corporation, etc. - As designed, Dung Quat Oil Refinery has an annual capacity of 6.5 million tonnes of crude oil. When fully operative, it will produce 150,000 tonnes of propylene a year; 300,000 tonnes of LPG a year; and 1.9 million tonnes of gasoline of all types a year, including 3,000-5,000 tonnes of A90 a day, and 2,700 tonnes of A92 and A95 a day; 400,000 tonnes of oil and jet fuel a year (650-1,250 tonnes/day); 3 million tonnes of diesel a year (7,000-9,000 tonnes/day); and 300,000 tonnes of FO (mazut) a year (1,000-1,100 tonnes/day).                               Story by Le Hai,  Vinh Hung - Photos by An Thanh Dat, Dang Lam, Ngoc Lam, Thanh Long, Vinh Hung, Le Hai