Prime Minister: Mobilize resources to build Dung Quat national oil and energy refining center

On April 3, the Government Standing Committee met on mechanisms and policies to develop the National Energy and Petrochemical Refining Center in Dung Quat Economic Zone (Quang Ngai).

At the meeting, Prime Minister Pham Minh Chinh said that the National Energy and Petrochemical Center is a large project that needs to mobilize resources to diversify, including State and private, Central and local, domestic and foreign, direct and indirect investment.

The Prime Minister requested the Ministry of Industry and Trade to complete records and documents on mechanisms and policies to develop this energy center. Quang Ngai Provincial People’s Committee coordinates with ministries and branches to complete records and documents, assess specific impacts of each policy, and work with investors.

At the same time, he assigned the Deputy Prime Minister to be in charge of the field to directly direct the completion of related documents, with the spirit of “only working, not backtracking, having a roadmap but focusing resources to do it quickly and effectively”.

According to the proposal of the Ministry of Industry and Trade, the national oil refining and energy center project has a total investment of 16.1-20.5 billion USD, divided into two phases. In the period 2025-2030, this project will be invested 14.1-17.5 billion USD; and additional about 2-3 billion USD by 2045.

When completed, this center is expected to meet at least 30% of the country’s petroleum demand, ensuring reserves equivalent to 30 days of production and consumption. In addition, the project creates 30,000 jobs, contributes 30% to GRDP of Quang Ngai province and promotes supporting industries such as logistics and supporting industries.

The National Oil Refining and Energy Center is oriented to develop according to a complete value chain model from importing, storing, and processing oil and gas to energy production and related industrial products, serving domestic and export needs. At the same time, the center will integrate new technologies such as green hydrogen, green ammonia, carbon capture and clean energy solutions to meet the requirements of energy transition.

The formation of this center aims to enhance national energy security, supply autonomy and reduce dependence on imports. At the same time, the project is expected to create motivation to attract large domestic and foreign investments, develop supporting industries, create jobs and economic growth in the Central region.

Opinions and reports at the meeting also said that building large-scale, integrated and internationally competitive energy industry centers is an urgent requirement. This project is also suitable in the context of Vietnam’s orientation to form new growth poles, a national energy center associated with regional advantages and global development trends.

Previously, the Politburo also specifically requested the construction of the National Energy and Petrochemical Refining Center in Dung Quat Economic Zone, considered a key task to ensure energy security, develop the marine economy and promote the country’s industrialization.

The National Energy Development Strategy identifies the goal of developing an integrated oil and gas – energy value chain, including gas, LNG, electricity, petrochemical refining and renewable energy. Developing energy centers in a green, clean, integrated and circular direction is also an inevitable trend, helping Vietnam achieve net zero emissions by 2050.

Besides, Dung Quat Economic Zone has a strategic location, deep-water port infrastructure, existing industrial system and Dung Quat Oil Refinery. These are the conditions to develop into a national petrochemical and energy refining center.