Binh Son Refining to borrow $1.2bn for Vietnam oil refinery expansion
Vietnamese Binh Son Refining and Petrochemical Co. (BSR) plans to borrow $1.2 billion (€1.12bn) to upgrade and expand its Dung Quat oil refinery.
BRS CEO Tran Ngoc Nguyen said the company would this month select the consulting unit, which would arrange loans with banks for the project.
According to BRS, the expansion project’s investment capital is estimated at $1.82 billion, 30% of which will come from the company’s budget while the remaining 70% will come from banks.
Once completed, the annual capacity at the refinery, located in Binh Son District in Quang Ngai Province, will reach 8.5 million tonnes of crude oil from the current volume of 6.5 million tonnes, increasing the stable supply of crude oil in accordance with the Euro 5 emission standard.
Euro standards are a series of emission control standards compiled by the EU for all new land vehicles.
In Vietnam, the Euro 4 standard will be officially put in use by early 2017 with the Euro 5 standard following by 1 January, 2020.
The preparation work for the expansion project has been carried out in accordance with a set process, including front-end engineering design (FEED) contract, resettlement areas, site clearance, compensation, and the selection of engineering procurement and construction (EPC) contractor.
The project will finish the FEED contract in April 2017 and small projects on site clearance, compensation and resettlement will be completed before May.