Vung Ro Refinery Project, Phu Yen Province, Vietnam


Vung Ro Petroleum is constructing a refinery, an integrated petrochemical complex, and a seaport in Phu Yen Province, Vietnam. Construction works on the $4bn project began in September 2014 and commissioning is expected in 2018.

The refinery will have a capacity of eight million tonnes per annum (mtpa) and process LPG, gasoline research octane number (RON) 92, gasoline Ron 95, jet fuel, diesel, fuel oil, and petrochemical products, including benzene, toluene, mixed xylenes, polypropylene and sulphur.

Gasoline and diesel processed at the refinery will meet the Euro-V specification, while the other products will meet the existing Vietnamese specifications and international standards.

The front-end engineering design (FEED) of the project was completed by JGC Corporation, who is also acting as the engineering procurement and construction (EPC) contractor for the project.

"The project is expected to generate 1,300 jobs and contribute $111m a year to the state."

The project is expected to generate 1,300 jobs and contribute $111m a year to the state.

Vung Ro Refinery location and project background

The Vung Ro Refinery site covers an area of 538ha in the Hoa Tam Commune of Dong Hoa District in Phu Yen Province. It is located within the Hoa Tam Industrial Zone, which is approximately 7km from the National Road 1A and national railway, 10km north of Vung Ro Bay, 15km south of Tuy Hoa Airport, and 35km south of Tuy Hoa Town.

The initial project plan, approved in 2007, had suggested a refinery with a capacity of 4mtpa to be implemented with an investment of $1.7bn. The plan was later revised in June 2013, doubling the project's capacity and investment. The project is aimed at catering to the future demands of the local market and the neighbouring Asian countries.

The development of the seaport at Hoa Tam Industrial Zone is primarily aimed at attracting major companies and enabling easy shipment of feedstocks and products. The new seaport will provide a single point mooring (SPM) for crude vessels.

Processing technologies to be used at the new refinery

The new refinery and integrated petrochemical plant will implement patented process technologies licensed by UOP Honeywell. The company was appointed as the managing licensor for the project. It will carry out the basic engineering design for the process units and provide the integrated main automation and control system.

UOP's process technologies to be integrated at the refinery include the Unionfining process, Selectfining process, Resid UOP Fluid Catalytic Cracking process, Platforming process, Penex process, Huels Selective Hydrogenation process, UOP Indirct Alkylation (INALK) process, Sulfolan process, Merox process, and Chlorsorb system.

INEOS Technologies was contracted to provide its Innovene PP process for manufacturing homopolymers, random copolymers and impact copolymers.

The refinery's sulphur recovery unit (SRU), which will comprise three parallel, identical, 95 million tonnes a day trains, will implement Jacobs Engineering Group's patented Superclaus Process, Caustic Scrubber and Shell Sulfur Degasification processes.

Lummus Technology was awarded the contract to be the licensor, and provide engineering and technical services for the ethylene recovery and olefins conversion units used in the production of propylene.

Facilities at the Vung Ro refinery

The refinery will include a power generation plant, a steam and condensate recovery system, water treatment and distribution system, seawater intake and cooling water system, air system, nitrogen supply facility, and fuel system.

"Off-site facilities will include storage tanks, product blending system, truck loading system, chemical handling facilities, flare system, waste handling and disposal facilities, and a fire fighting system."

Off-site facilities will include storage tanks, product blending system, truck loading system, chemical-handling facilities, flare system, waste handling and disposal facilities, and a fire fighting system.

Key players involved with the refinery project

The basic engineering design for the polypropylene unit was carried out by Technip, while the low-pressure recovery and olefins conversion units will be installed by CB&I.

Engineering services for the refinery's crude distillation unit (CDU), liquids recovery unit (LRU), and vacuum distillation unit (VDU) were provided by Process Consulting Services.

The project management consultant is Foster Wheeler, the marine works consultant is the Japan Port Consultants, the marine transport adviser is McQuilling Partners, and the port engineering consultant is Oriconsul.

Vinaconex was appointed as the consultant for survey and preparation of feasibility study for the refinery's water supply system.

The contract for the basic design of the seaport was awarded to Royal HaskoningDHV. The seaport construction is being carried out by Van Oord. Clifford Chance was appointed to advise on the legal aspects and structuring of the project.

The geotechnical survey contractor for the project is Engeo Company, while the marine survey contractor is PTECH. The financial adviser is Storm Harbour, while the tax and accounting advisor is KPMG.

NRI Energy Technology