Vung Ro Petroleum Refinery Project

Introduction

The VRP refinery and petrochemical project is a US$4 billion oil refinery, petrochemical and seaport development in the Dong Hoa district of Phu Yen province. The VRP project will be fully financed by foreign investors and managed by the VRP’s team of international experts in the fuel-energy sector. Vung Ro Petroleum is undertaking stringent environmental practices to protect the site and its surrounds.

The project represents an attractive investment opportunity in a rapidly growing market. It comes at a time when Vietnam is reliant on imported fuel and petrochemical products and demand for refined products in Vietnam has grown 8.7% per annum over the past 8 years. As Vietnam moves into line with the region’s other fast-moving economies, there is room for further significant growth. However, by 2012, the energy usage per capita in Vietnam was a quarter of usage in Malaysia and less that a twentieth of usage Singapore. VRP’s grassroots refinery, with a capacity of 8 MMTPA, is designed to meet future demand.

Major Vietnamese oil companies are keen to market VRP’s Euro-V specification refined products in the domestic market, and VRP’s products are primed for export by leading international oil companies. Vung Ro Petroleum has cultivated strong ties with sources of crude oil to ensure a stable supply to its oil refinery.

The VRP refinery project will serve the Vietnamese people with Foreign Direct Investment, job creation, the development of infrastructure to allow for future economic growth in the Phu Yen Province, and the enhancement of Vietnam’s overall energy security through domestic production.

Project Overview

A. Project Location

The VRP refinery project covers an area of 538 hectares in the Hoa Tam Commune, Dong Hoa District, Phu Yen Province. VRP is the driving force of industrial development in Hoa Tam Industrial Zone, a part of South Phu Yen Economic Zone in which the refinery project is located. The project site is close to Bai Goc deepwater seaport, approximately 7 km from the National Road 1A and National Railway, 10 km north of Vung Ro Bay, 15 km south of Tuy Hoa Airport, and 35 km south of Tuy Hoa City.


B.Marine and Harbor

Vung Ro Petroleum is building a world-class seaport to enable Phu Yen’s emerging industries to connect to world markets. Marine facilities are vital to the effective running of a refining complex, and VRP will develop a seaport for the Hoa Tam Industrial Zone as part of the project. These facilities will be designed to ensure the efficient and economic receipt of crude oil, and to guarantee that products can be shipped quickly to optimize the refinery’s operational efficiency.

The marine facilities will be located at the coastal site of the VRP refinery and will feature good vessel manoeuvring capability, less routine dredging for maintenance, the capability for future expansion, and will have minimal environmental impact.

The offshore topology in the vicinity of the refinery shows a rapid increase in water depth for 2 km offshore. For this reason, it was decided to provide a single point mooring (SPM) for crude vessels.

C. Feedstock and Refinery Products

The VRP blend (representative mixture of the eastern Asian region crude oil basket) is the refinery configuration design basis. The refinery configuration allows to produce quality fuel products (LPG, Gasoline RON 92/95, Jet Fuel, Diesel, Fuel Oil) and petrochemical products (Benzene, Toluene, Mixed Xylene, Polypropylene). Gasoline and diesel produced at the refinery will achieve Euro-V specification. The other products will satisfy both current Vietnam specifications and international standards.


D. Licensed technologies

Item Licensor Unit
1 UOP UNIONFINING™PROCESS
SELECTFINING™ PROCESS
RESID UOP FLUID CATALYTIC CRACKING PROCESS
PLATFORMING™ PROCESS
PENEX™ PROCESS
HUELS SELECTIVE HYDROGENATION PROCESS
UOP INDIRECT ALKYLATION (INALK™) PROCESS
SULFOLAN™ PROCESS
MEROX™ PROCESS
CHLORSORB™ SYSTEM
2 CB&I/Lummus Technology Inc. LOW PRESSURE RECOVERY AND THE OLEFINS CONVERSION TECHNOLOGY PROCESSES
3 INEOS THE INNOVENE PP GAS PHASE POLYPROPYLENE PROCESS
4 JACOBS SUPERCLAUS® PROCESS
CAUSTIC SCRUBBER PROCESS
SHELL SULFUR DEGASIFICATION PROCESS