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Energy

Hyundai E&C, Technip lead groups in bids to expand Vietnam refinery

FILE PHOTO: Dung Quat oil refinery is seen in Vietnam's central Quang Ngai province February 22, 2009. REUTERS/Kham/Files

HANOI (Reuters) - Two consortiums led by Hyundai Engineering & Construction and Technip Italy are bidding for a $1.8 billion project to upgrade and expand Vietnam’s Dung Quat refinery, the owner of the plant said on Thursday.

Binh Son Refining and Petrochemical said in a statement the project would raise the refinery’s capacity by 30% to 8.5 million tonnes of crude oil a year, or 170,000 barrels per day.

A company source told Reuters on Thursday the company would name the winner of the bid in about a month.

The source added that the refinery was running at full capacity after it was restarted more than a week ago following a 50-day shutdown for maintenance.

“The expansion and upgrade of the refinery is a necessary and urgent task to ensure the flexible, stable and efficient operations of the refinery, enabling it to process more types of crude oil,” the company said in the statement.

The 130,000-barrel-per-day refinery in the central province of Quang Ngai started commercial operations in 2009. It was originally designed to process mostly crude oil from Vietnam’s Bach Ho field, whose production has peaked.

The Hyundai E&C-led consortium also consists of Hyundai Engineering Co. [HYENG.UL], according to Binh Son. The other consortium includes Technip Italy, Technip Geoproduction, Technip France, PetroVietnam Technical Services Corp. and Lilama Corp.

Binh Son said work on the expansion and upgrade of the refinery would start in August 2021.

Reporting by Khanh Vu; Editing by Edmund Blair and Kim Coghill

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