Meeting over 30% of domestic gasoline and oil demand
Dung Quat Oil Refinery (NMLD) has a total investment of over 3 billion USD. This is the first oil refinery in Vietnam, and also the 2nd largest oil refinery in the country. Processing capacity of 6.5 million tons of crude oil per year, meeting over 30% of domestic gasoline and oil demand.
Mr. Cao Tuan Sy - Director of Dung Quat Oil Refinery - said that the designed capacity of Dung Quat Oil Refinery is to process 6.5 million tons of crude oil/year, producing 6.3 million tons of products. However, in reality, in the last 5 years, Dung Quat Oil Refinery has produced a volume of products greater than the designed capacity (6.5 million tons). Specifically, in 2022 it was 7 million tons, in 2023 it was 7.36 million tons and in 2025 it was 7.9 million tons.
Mr. Cao Tuan Sy informed that in order to maintain a safe capacity of 124-125% as it is now, Binh Son Refining and Petrochemical Joint Stock Company (BSR) has had a thorough research process, removing bottlenecks in the technology line, optimizing factory operation, taking advantage of the spare designed capacity of each workshop in the technology line, regulating production and operating management.
Currently, to respond to the complex situation of the war conflict in the Middle East, Dung Quat Oil Refinery is operating safely and stably at a capacity of 124-125%. The high-capacity operation of Dung Quat Oil Refinery is the result of a multi-year process of research, evaluation, testing, conversion and optimization.
During operation, engineers at Dung Quat Oil Refinery have based on the backup designed capacity of the production line system, raw material characteristics, configuration, equipment characteristics... to research, test, remove technical bottlenecks and come up with a roadmap to increase capacity when necessary.
That roadmap undergoes the process of assessing all risk factors of equipment, control systems, safety protection systems; is operated in simulation through technology simulation models, consulting opinions directly from technology copyright providers, insurance units for oil refineries, removing technical bottlenecks and conducting small-scale trial operations in a short time for practical inspection to ensure reliability and safety according to standards.
Increasing domestic supply before the risk of crude oil supply chain disruption
In the context of the escalating Middle East conflict, increasing the risk of crude oil supply chain disruption, and sharply increasing international transportation and insurance costs, maximizing domestic supply from domestic refineries is one of the most practical solutions to reduce import dependence and limit the spillover effect from the international market to the domestic market.
On a broader scale, Dung Quat Oil Refinery's optimal capacity increase is directly linked to the joint efforts of Vietnam National Petroleum Group (Petrovietnam) in ensuring energy security. Dung Quat Oil Refinery operating at 124-125% capacity is not an isolated effort of BSR, but is part of a series of solutions from Petrovietnam to the Government that are being applied to maintain supply stability in the complex geopolitical context.
According to Mr. Tran Phuoc Hien - Vice Chairman of Quang Ngai Provincial People's Committee, Quang Ngai provincial leaders have issued an official dispatch directing the strengthening of management and control of gasoline and oil business activities in the context of the complicated developments in international gasoline and oil supply.
The Provincial People's Committee also agreed with the proposal of Binh Son Refining and Petrochemical Joint Stock Company - a member unit of Vietnam National Group of Industry and Energy (Petrovietnam) on prioritizing the maximum use of domestic crude oil sources; proposing a mechanism to implement the national crude oil reserve in Quang Ngai; a mechanism to ensure service for production and business for the plant; strengthening research to soon put into practice the blending of bio-gasoline, ethanol production; propaganda on effective and energy-saving use...
In the immediate future, Quang Ngai Provincial People's Committee requests Binh Son Refining and Petrochemical Joint Stock Company to continue to promote and maintain safe and continuous production activities at the highest level; ensure the output of gasoline and oil supply to distribution points in the province, contributing to ensuring operations at gasoline and oil stores in the province; proactively coordinate with relevant agencies, units, and localities to review, promptly report, and propose to competent authorities to consider and remove difficulties and obstacles (if any) in the implementation process.
