BSR Secures Fuel Supply, Accelerates Dung Quat Upgrade

High Throughput Keeps the Market Supplied

At a July 21 working session with a Ministry of Industry and Trade delegation led by Deputy Minister Nguyen Hoang Long, BSR President and CEO Nguyen Viet Thang reported that the Dung Quat Oil Refinery had continued to operate safely, stably and continuously. During the first six months of 2026, the refinery averaged 124% of design capacity, directly supporting domestic fuel supply at a time when oil prices, energy trade and international shipping remained exposed to significant uncertainty.

Through flexible management, process optimization and close coordination across production, trading, inventories and logistics, BSR produced 4.05 million tonnes of products, equivalent to 101% of plan and 5.3% higher year on year. Consolidated revenue reached VND 100.9 trillion, while contributions to the state budget totaled VND 5.9 trillion. These results demonstrate the company’s ability to manage an integrated feedstock-processing-distribution chain at a refinery central to Vietnam’s energy balance.

By the end of June 2026, BSR’s cumulative output had reached 109.7 million tonnes, generating VND 1.95 quadrillion in revenue and VND 265.2 trillion in state-budget contributions. The refinery had also recorded more than 57.5 million safe working hours without a lost-time accident. Alongside its transition to a corporation model, BSR is preparing for the E10 gasoline roadmap through equipment modifications, higher E100 output and stable supply of base gasoline to blending operators.

EPC Phase Opens a Decisive Stage for the Upgrade

While maintaining production, BSR is accelerating the Dung Quat Oil Refinery Upgrade and Expansion Project. As of July 16, 2026, site filling had reached 57.2%. All topsoil removal had been completed, while soil extraction, transportation and embankment works were each at about 57% of plan. This progress provides the physical platform required for the project’s major construction packages in the next stage.

The signing of the EPC contract in July 2026 moved the project from preparation into detailed engineering, procurement, construction, installation and commissioning. With total investment of VND 36.397 trillion, or approximately USD 1.489 billion, the project will raise crude-processing capacity from 148,000 to 171,000 barrels per day. The expansion will create additional room to meet fuel demand and improve the resilience of Vietnam’s domestic supply system.

The project’s strategic value goes beyond higher output. After the upgrade, gasoline, diesel and Jet A-1 fuel will meet Euro V standards, while the refinery will be able to process a broader range of domestic and imported crudes. The front-end engineering design prepared by Wood integrates advanced technologies for residue processing, hydrotreating, hydrogen production and sulfur recovery, ensuring compatibility with the existing refinery configuration.

From a Refinery to the Core of an Energy Hub

At the working session, BSR proposed special mechanisms to accelerate the formation of a national refining, petrochemical and energy center in the Dung Quat Economic Zone. The vision broadens development from conventional refining into chemicals, clean energy, green hydrogen, low-emission fuels, LNG, logistics and research and development. Within this structure, the Dung Quat Oil Refinery would serve as the industrial nucleus, linking feedstocks, infrastructure, technology and markets for downstream and supporting projects.

The proposals focus on special investment mechanisms, simpler procedures for projects already included in approved plans, stronger decentralization and a one-stop administrative model. BSR also recommended policies on land rental, taxation, credit, research and development and expert attraction; more flexible petroleum-trading rules for imports, transit trade and exports of feedstocks and products; and risk-management instruments suited to price volatility while maintaining strict operating-safety standards.

The Ministry of Industry and Trade’s direction therefore carries a dual imperative. In the near term, BSR must secure sufficient feedstock and keep Dung Quat operating safely and continuously so that domestic supply is not disrupted. Over the longer term, it must deliver the upgrade on schedule and help create a new industrial-energy growth pole in Central Vietnam. By connecting capacity, technology, biofuels, logistics and investment mechanisms in one strategy, Dung Quat can become a foundation for Vietnam’s energy self-reliance and industrial competitiveness.

By Uyen Ly