On October 15, Mr. Nguyen Hoai Giang, General Director of the Binh Son Refinery and Petro-chemistry Co., Ltd., confirmed that the temperature at the thermal expansion joints on the CO discharge pipe of the CO-BOILER equipment, at the cracking catalytic workshop (RFCC) increased abnormally. The incident took place on October 8 but it did not affect the plant’s operation. The plant is still operating at its 100 percent of capacity, Giang said.

Experts have developed a roadmap to completely fix errors to hand over the refinery later this year, Giang added.

This year, Dung Quat refinery was shut down twice. The most recent time was from the afternoon of August 8 to August 17 (unplanned) to handle technical errors, also on the thermal expansion joints on the CO exhaust pipe at the RFCC workshop. Previously, the plant was shut down (planned) from early May to early July to handle technical errors before the last test and delivery.

Experts of Technip group and engineers, workers of the Binh Son Refinery and Petrochemistry Co., Ltd. fixed four major technical problems and a few dozens of small errors at technological workshops. In particular, major technical problems were at the RFCC workshop – the most important technological workshop of the refinery.

From February 2009, Dung Quat refinery has imported 15 million tons of crude oil from domestic and foreign oil fields to process more than 13.4 million tons of products of all kinds.

Although this year it had to temporarily stop operating twice, Mr. Giang insisted that the plant sold 5.4 million tons of petroleum products, to ensure its contribution of VND15.35 trillion ($757.5 million) to the state budget, exceeding the yearly plan.

Regarding the plant’s expansion, Giang said that potential foreign partners are still learning about the project.

By Nam Nguyen - VietNamNet Bridge - October 16, 2012

Refinery denies shut-down rumours

HCM CITY — A spokesman for the Dung Quat oil refinery has denied rumours that the plant had suspended operations, confirming that it was running at full capacity.

"The plant is huge and very important to the economy. It has been operating since the one-week stoppage in August," Nguyen Hoai Giang, general director of Binh Son Petro-Chemical Refinery Co, was quoted as saying by the Tuoi Tre (Youth) newspaper.

Since it began operation in 2009, the refinery has had to suspend operations several times for technical adjustments.

Giang, who spoke at a press meeting on Monday, said these stoppages had all been planned one or two weeks in advance.

"Technical hitches are very normal for a such big plant like Dung Quat. We are trying to solve all hitches and smoothly run the plant before finally assuming transfer of business from the main contractor Technip at the end of this year," he added.

As a result of the temporary shutdowns, the plant has been forced to import foreign petrol and oil to compensate for its reduced supply to wholesalers.

Input expenditures for the oil refinery have exceeded the refinery's product prices, according to Giang.

Ninety per cent of the refinery's crude oil comes from local sources, which is more expensive and harder to refine than imported oil because of its chemical components.

Giang also noted that the State regulated the selling price as well.

"That is why the plant must be upgraded quickly so we can refine other kinds of oil, and use less expensive imported crude oil," Giang said.

Since its opening, the refinery has received many incentives from the Government.

Its product prices, for example, have been increased by 3- 7 per cent, equivalent to the import tax on foreign-refined products.

Moreover, the Binh Son Petro-Chemical Refinery Co, pays a 10 per cent corporate tax over a 30-year period, compared to the 25 per cent rate paid by many other companies.

Vietnam News - October, 17 2012