Nearly $2 billion invested in expanding Dung Quat Refinery.

At a meeting with the Vietnam Oil and Gas Group on the afternoon of October 22nd, the Chairman of the People's Committee of Quang Ngai province, Le Viet Chu, emphasized that the project to upgrade and expand the Dung Quat oil refinery is an extremely important prerequisite for promoting the socio-economic development of the locality, contributing to building a strong refinery, and therefore must be implemented immediately.

A view of the Dung Quat oil refinery.

According to Mr. Le Manh Hung, Deputy General Director of Vietnam Oil and Gas Group, the Dung Quat Refinery project will expand by an additional 108.2 hectares, including four main locations and a safety corridor. This expansion includes 6.2 hectares in the southern area (product storage); 15.7 hectares in the northern area (crude oil storage); 28.8 hectares in the western area (intermediate zone); 43.3 hectares in the eastern area; and 14.2 hectares for the safety corridor. The total investment cost is estimated at between 1.8 and 2 billion USD.

Mr. Le Viet Chu also stated that Quang Ngai province will proactively invest and contribute 30% of the capital to expedite land clearance to the best of its ability; ensuring timely handover to the Dung Quat oil refinery, no later than the third quarter of 2016.

Mr. Pham Nhu So, Head of the Dung Quat Economic Zone Management Board, suggested that Quang Ngai province and the Vietnam Oil and Gas Group should carefully consider the plan to expand this plant, especially regarding compensation for 401 households and more than 2,700 graves located within the project area.

Mr. Le Viet Chu also proposed that the most optimal solution is to choose the northwest area of ​​the Van Tuong urban area (approximately 35.2 hectares) as the resettlement area for these households because the land clearance process would encounter fewer obstacles than other locations, costing only about 770 billion VND.

According to rural economics