The first flow of products from the Dung Quat Refinery is scheduled to be transported to a depot through an 8-kilometer pipeline Tuesday, the statement said, citing Nguyen Hoai Nam, the refinery's test-run deputy manager.

The statement, posted on the party's Web site, said the refinery already started turning out naphtha, kerosene and diesel February 14.

The Dung Quat Refinery, with a daily processing capacity of about 130,000 barrels of crude oil, will meet 30% of the country's demand, the government said in December.

In its first three months of operation, the refinery will produce kerosene, diesel and naphtha, and will subsequently produce other fuels, the government said, giving no volume details.

When fully operational, the refinery is expected to annually produce 150,000 metric tonnes of propylene, 300,000 tonnes of liquefied petroleum gas, 1.9 million tonnes of 90, 92 and 95 octane gasoline, 400,000 tonnes of kerosene and jet fuel, 3 million tonnes of diesel and 300,000 tonnes of fuel oil, it added.

State media said last week it cost more than US$3 billion to build the refinery.

Dow Jones - February 19, 2009