Project Profile
Value: US$4bn
Location: Hoa Tam Commune of Dong Hoa District, Phu Yen Province, within the Hoa Tam Industrial Zone, Vietnam
Area: 538ha
Capacity: eight million tonnes per annum (MTPA)
Start-up Year: 2018
Vung Ro Petroleum plans to construct a refinery, an integrated petrochemical complex, and a seaport in Phu Yen Province, Vietnam. Construction works on the US$4bn project are slated to start in 2014 and the facilities will be commissioned in 2018. The refinery will have a capacity of eight million tonnes per annum (MTPA) and will 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) phase of the project is scheduled to be completed by mid-2014. JGC Corporation was awarded the FEED and the engineering procurement and construction (EPC) contracts for the project. The project is expected to generate 1,300 jobs and contribute US$111m a year to the state. 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 seven kilometres 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 four million tonnes per annum 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.
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 of three parallel identical 95 million tonnes per day trains, will implement Jacobs Engineering Group\'s patented Superclaus Process, Caustic Scrubber Process, and Shell Sulfur Degasification Process. 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.
The basic engineering design for the polypropylene unit will be carried out by Technip, while the low-pressure recovery and olefins conversion units will be installed by CB&I. The engineering services for the refinery\'s crude distillation unit (CDU), liquids recovery unit (LRU), and vacuum distillation unit (VDU) will be provided by Process Consulting Services. The project management consultant is Foster Wheeler, the marine works consultant is the Japan Port Consultants, the marine transport advisor 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 will be carried out by Van Oord. The geotechnical survey contractor for the project is Engeo Company, while the marine survey contractor is PTECH. The financial advisor is Storm Harbour, while the tax and accounting advisor is KPMG.
Facilities
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.
Operators:
Vung Ro Petroleum: Operator with 100% interest
Contractors:
UOP Honeywell: Managing licensor for the project
JGC Corporation: FEED and the engineering procurement and construction (EPC) contracts for the project
INEOS Technologies: Contract to provide its Innovene PP process for manufacturing homopolymers, random copolymers and impact copolymers
Lummus Technology: 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.
Technip: Basic engineering design for the polypropylene unit
CB&I: Installation contract for the low-pressure recovery and olefins conversion units
Process Consulting Services: Engineering services for the refinery\'s crude distillation unit (CDU), liquids recovery unit (LRU), and vacuum distillation unit (VDU)
Foster Wheeler: Project management consultant
Japan Port Consultants: Marine works consultant
McQuilling Partners: Marine transport advisor
Oriconsul: Port engineering consultant
Vinaconex: Consultant for survey and preparation of feasibility study for the refinery\'s water supply system.
Royal HaskoningDHV: Contract for the basic design of the seaport
Van Oord: Seaport EPC contract
Engeo Company: Geotechnical survey contractor for the project
PTECH: Marine survey contractor
Storm Harbour: financial advisor
KPMG: Tax and accounting advisor