Underground oil depot to be built in Dung Quat
By Quoc Hung - The Saigon Times Daily
HCMC - The Dung Quat Economic Zone Authority last week awarded an investment certificate for PetroVietnam Oil Stockpile Limited Company to build the country’s largest underground oil depot worth US$340 million in the central province of Quang Ngai.
Covering 180 hectares in the eastern industrial zone of the Dung Quat Economic Zone, the depot will be able to reserve 1.6 million cubic meters of petroleum products for the Dung Quat Oil Refinery and some factories in Southeast Asia in order to ensure national fuel security, according to the management board.
The first phase with capacity of 600,000 cubic meters is expected to be implemented early next year and is scheduled for completion by 2014. Phase two will be completed by 2015 to raise capacity to 1.6 million cubic meters.
The project is a joint venture between Vietnam National Oil and Gas Group (PVN), PVOil, PVFC, PVI and two foreign partners, Hong Kong’s ESPECO Company and South Korea’s SK Company.
The project is a significant operational element of the Dung Quat Oil Refinery as it will help to ensure a sufficient supply of petroleum to satisfy the country’s socio-economic development, food safety and international transportation demand, according to the authority.
Leaders of the authority have asked the investor to ensure environmental protection measures when the project is put into operation.
This will be the country’s second underground petroleum warehouse. The first is under construction in the southern coast province of Ba Ria-Vung Tau’s Long Son District.
Vietnam’s first 40-hectare oil reserve depot is being constructed in the southern city of Vung Tau. The country has uncovered over 50 oil and gas fields with combined reserves of 540 million tons of oil and 640 billion cubic meters of natural gas, according to PVN.