A representative of the Vietnam National Petroleum Group said that Nghi Son Refinery would still supply petrol products as normal in August but will stop deliveries in September and October. — Viet Nam News
HANOI: Major petroleum enterprises are planning to increase petrol imports to compensate for the shortage of petroleum supply due to the temporary closure of Nghi Son Refinery Plant for maintenance from Aug 25.
A representative of the Vietnam National Petroleum Group (Petrolimex) said that Nghi Son Refinery would still supply petrol products as normal in August but will stop deliveries in September and October.
Petrolimex has known about the overall maintenance plan of Nghi Son Refinery, so it has signed a contract to import petrol products to meet domestic demand during the maintenance at Nghi Son Refinery which is expected to last for 55 days.
Chairman of the Vietnam Oil Corp (PVOIL) Cao Hoai Duong also said that PVOIL has proactively planned to import petroleum products of all kinds since the beginning of the year to ensure the supply for the market.
Duong also said that the Vietnam Oil and Gas Group and two oil refineries, Dung Quat and Nghi Son, worked closely to avoid the maintenance at the same time, affecting the supply for the domestic market.
Bình Son Refining and Petrochemical Co (BSR), the unit that manages and operates Dung Quat oil refinery plant, said the refinery is running at full designed capacity to meet the market demand for petroleum.
BSR also plans to ensure the supply of crude oil for the refinery. BSR’s reserves of crude oil now ensure Dung Quat oil refinery will operate at high capacity in both the third and fourth quarters.
Hasegawa, general-director of Nghi Son Refining and Petrochemical Co Ltd (NSRP), said NSRP is coordinating and working closely with relevant authorities to ensure that the overall maintenance will not affect the operation of the domestic petroleum market as well as consumers.
In 2023, NSRP estimates to process about 7.96 million tonnes of crude oil. NSRP’s petroleum products now meet about 40% of domestic gasoline demand.
According to the General Department of Customs, by July 15, Vietnam imported more than 5.68 million tonnes of petroleum, 600,000 tonnes higher than the same period last year.
Deputy general-director of the Vietnam Commodity Exchange Duong Duc Quang said oil prices are on the rebound due to concerns that supply will shrink in major exporting countries in the world.
“However, the prices will struggle to surpass the level of US$100 (RM455) per barrel, because the economic outlook and consumption in major economies is still variable,” Quang said.
“In the scenario of a decrease in both supply and demand, the oil prices will likely be relatively stable in the second half of 2023, possibly ranging between US$65 and US$85 (RM296 and RM387) per barrel.”
Petrol prices play an important role in transportation costs, accounting for 35% to 40%, so fluctuations in oil prices will affect the prices of many other goods.
“With a stable oil price scenario, it is expected to keep stability in commodity prices on the market, thereby curbing inflation at the target level and supporting economic growth,” Quang said.
According to the Industry and Trade Ministry, by 2045, Vietnam is estimated to lack about 12 million tonnes of petroleum per year and 3.5 million tonnes of petrochemical products per year.
With limited technological and financial capacity, Vietnam needs to work with foreign partners to get the most advanced technology possible as well as to mobilise capital for the development of the petrochemical industry. — Viet Nam News/ANN
