Dung Quat refinery faces year-end surplus

PetroVietnam, the nation's state-owned oil and gas group, has said that its Dung Quat refinery will face a surplus of around 157,200 cubic meters this year even if local fuel traders try their best to purchase its products.

Petrolimex, a subsidiary of PetroVietnam that owns more than a 50 percent share of the domestic fuel market, plans to buy 273,100 cubic meters this month and at least another 407,300 cubic meters in the next two months, VnExpress reported Monday.

Other traders, including PV Oil, Petec and the jet fuel firm Vinapco, also announced plans to purchase Dung Quat’s products.

PetroVietnam said that, by the end of December, fuel companies will not be able to use up all of their inventory.

On October 4, the group announced that Dung Quat, Vietnam’s first oil refinery, had 750,000 tons of oil and gasoline products in stock and not enough space to store them.

The plant has been running at full capacity, or 30 percent higher than the plan for this year.

The Ministry of Industry and Trade has ordered PetroVietnam to balance supply and demand in the domestic market next year.

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Dung Quat oil refinery operates effectively

The Dung Quat Oil Refinery in the central province of Quang Ngai
is running effectively, helping ensure national energy security, a
conference was told on Oct. 18.

A report presented by
Minister of Industry and Trade Vu Huy Hoang at the event showed that the
plant now can meet about 30 percent of the domestic demand for
petroleum and that it has created a breakthrough in economic development
in Quang Ngai, helping boost economic growth in the central region and
the country.

Dung Quat Oil Refinery started its operation in February 2009, becoming the first petrochemical complex in Vietnam .

In a draft report on the implementation of the National Assembly
resolution on the first refinery, the NA’s Committee on Science,
Technology and Environment proposed the NA to recognise the completion
of the project at its upcoming 8th session.

The
committee also proposed that the Government map out plans to raise the
refinery’s capacity in order to develop the petrochemical industry in
conformity with the schemes to develop the Dung Quat Industrial Zone and
the central economy./.

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Vietnam’s only refinery to auction oil

Photo: Reuters

Oil produced at the Dung Quat refinery will be auctioned out to reputed buyers, an official told Tuoi Tre Monday, adding that necessary paperwork is being done for it.

Nguyen Hoai Giang, general director of the Binh Son Oil Refining and Petrochemical Company Limited, which operates the refinery, said it should not be difficult to restrict the auction to reputed distributors.

Binh Son’s state-run holding company PetroVietnam (PVN) has held a similar auction for one of its subsidiaries, he said.

Last week a top PVN executive said poor forecast of supply and demand had left Vietnam’s sole oil refinery saddled with huge volumes of unsold products.

Domestic demand was 10 percent lower than forecast and the plant’s output was 25 percent higher, he said.

One wholesaler said Dung Quat’s products cost more than imported fuel but are still preferable because of the exchange rate risks involved in importing.

Three state-owned companies have the right to distribute Dung Quat products -- PV Oil, Petec, and Petrolimex.

Petrolimex was added to the list after it complained that it was unfair to allow just two of PVN’s affiliates to buy directly from the refinery.

Petrolimex is set to finalize a deal to buy 140,000 cubic meters of A92 and A95 gasoline and diesel oil with Binh Son this month.

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Petrol stockpiled as imports continue

Photo: Tuoi Tre

The quickest way to help lower stockpiles of refined petroleum products produced by the Dung Quat Oil Refinery would be to minimize petrol imports, PetroVietnam general director Pham Dinh Thuc said on Thursday.

Domestic petrol consumption has ended up 10 percent lower than predictions for this year, while production at the Dung Quat Oil Refinery was now exceeding the year's plan by 25 percent, Thuc said.

In the fourth quarter of this year, the refinery was expected to produce about 1.9 million tons of petrol, while domestic petrol distributors such as PVOil, Petec and Petrolimex have registered to buy only 430,000 tons from the refinery.

As a result, stockpiles have reached 75,000 tons and are predicted to mount to 727,000 tonnes by the end of the year.

Domestic importers could revise their signed contracts to import fuel and buy up the difference from Dung Quat, Thuc suggested.

However, Petrolimex deputy director Dam Thi Huyen said PetroVietnam should anticipate petrol consumption needs in light of import contracts already signed by domestic distributors, who would have to pay heavy damages if the breached the agreements.

Thuc suggested these importers might be able to re-export products to other buyers, even if they can't break their contracts.

The Dung Quat Oil Refinery faced difficulties during its first period of operation, and it had been expected to operate at only 80 percent of initial capacity this year. PetroVietnam has urged importers to prepare to receive locally-produced petrol in the near future.

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Petrol stockpiled as imports continue

The quickest way to help lower stockpiles of refined petroleum products
produced by the Dung Quat Oil Refinery would be to minimise petrol
imports, PetroVietnam general director Pham Dinh Thuc said on Oct. 7.

Domestic petrol consumption has ended up 10 percent lower than
predictions for this year, while production at the Dung Quat Oil
Refinery was now exceeding the year's plan by 25 percent, Thuc said.

In the fourth quarter of this year, the refinery was expected to
produce about 1.9 million tonnes of petrol, while domestic petrol
distributors such as PVOil, Petec and Petrolimex have registered to buy
only 430,000 tonnes from the refinery.

As a result, stockpiles have reached 75,000 tonnes and are predicted to mount to 727,000 tonnes by the end of the year.

Domestic importers could revise their signed contracts to import fuel
and buy up the difference from Dung Quat, Thuc suggested.

However, Petrolimex deputy director Dam Thi Huyen said PetroVietnam
should anticipate petrol consumption needs in light of import contracts
already signed by domestic distributors, who would have to pay heavy
damages if the breached the agreements.

Thuc suggested these importers might be able to re-export products to other buyers, even if they can't break their contracts.

The Dung Quat Oil Refinery faced difficulties during its first period
of operation, and it had been expected to operate at only 80 percent of
initial capacity this year. PetroVietnam has urged importers to prepare
to receive locally-produced petrol in the near future./.

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PM Dung urges inspectors to be incorruptible

Photo: VNA

Prime Minister Nguyen Tan Dung has emphasized transparency in the inspection mechanism and the legal system so as to avoid abuse of loop holes for self-interest.

Dung made the requirement at a meeting to mark the 65th founding anniversary of the Vietnam Inspectorate and receive the Gold Star Order in Hanoi on Tuesday.

He said the inspection force should continue with upgrading relevant mechanisms and procedures as well as improving the quality of the work for settling petitions and claims and corruption control.

“Efforts should be made to remove problems and limitations in the legal system in order to eliminate the attempt to abuse legal loop holes for illegitimate interests and negative phenomena,” said the government leader.

The Gold Star Order, the highest decoration of the Vietnamese Government, was presented to the inspectorate in recognition of the force’s contributions to detecting and punishing negative phenomena and corruption.

Dung also recognized inspectors’ efforts in discovering numerous problems and limitations in the existing policies and mechanisms as well as their recommendations for adjustments of these weak points, thus contributing to improving the quality of state management in various fields.

“The work of receiving ordinary people, dealing with letters of petition and solving citizens’ complaints and petitions have increasingly improved, thus protecting people’s legitimate rights and ensuring management disciplines, political security and social order,” he concluded.

Over the past five years, the inspectorate has uncovered nearly VND47.4 trillion (about US$2.4 billion) and over $7 million misappropriated in economic cases. The force has helped take back over VND18 trillion and almost $994,000 for the state coffer.

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PM urges industrialization of agriculture in Vinh Long

Photo: Tuoi Tre

Prime Minister Nguyen Tan Dung has called on the Mekong Delta province of Vinh Long to speed up economic restructuring by focusing on industrial development, while tapping agricultural strengths.

The Government leader gave the advice during his working session with the provincial administration on Monday. He said Vinh Long should cash in on its temperate climate and fertile land which is ideal for fruit specialties such as grapefruit and freshwater products like tra and basa fish.

He asked provincial authorities to work out policies in favor of agricultural production on an industrial scale in harmony with rural development and improvement of farmers’ living conditions.

Dung called on the province to increase GDP growth to over 13 percent annually in the next five years from 11.19 percent in the 2006-10 period and per-capita incomes to US$1,850 by 2015 from $1,000 at present.

The poverty rate should drop by two percent in each of the next five years while all industrial and medical facilities should have their waste collected and properly treated.

All this should be done in an effort to join the national industrialization and modernization cause, the Government leader emphasized.

In this regard, Prime Minister Dung and provincial leaders shared a view on intensifying investment in traffic infrastructure, irrigation projects, healthcare, education, rural vocational training and employment promotion.

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PM urges industrialisation of agriculture in Vinh Long

Prime Minister Nguyen Tan Dung has called on the Mekong Delta province
of Vinh Long to speed up economic restructuring by focusing on
industrial development, while tapping agricultural strengths.

The Government leader gave the advice during his working session with
the provincial administration on September 6. He said Vinh Long should
cash in on its temperate climate and fertile land which is ideal for
fruit specialties such as grapefruit and freshwater products like Tra
and Basa fish.

He asked provincial authorities to work
out policies in favour of agricultural production on an industrial
scale in harmony with rural development and improvement of farmers’
living conditions.

Dung called on the province to
increase GDP growth to over 13 percent annually in the next five years
from 11.19 percent in the 2006-10 period and per-capita incomes to 1,850
USD by 2015 from 1,000 USD at present.

The poverty
rate should drop by two percent in each of the next five years while all
industrial and medical facilities should have their waste collected and
properly treated.

All this should be done in an
effort to join the national industrialisation and modernisation cause,
the Government leader emphasised.

In this regard,
Prime Minister Dung and provincial leaders shared a view on intensifying
investment in traffic infrastructure, irrigation projects, healthcare,
education, rural vocational training and employment promotion./.

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PM pledges clear path for US firms

CAN THO — Prime Minister Nguyen Tan Dung received the US-ASEAN Business Council delegation yesterday in Can Tho where the delegation will attend a conference on the Investment and Development of the Mekong Delta.

Dung said the economic and trade relationship between Viet Nam and the US had achieved many successes and in 2009, two-way trade reached US$15.5 billion. He added that investment by US enterprises in Viet Nam had also increased, catapulting the US to sixth largest of all the countries investing here.

Dung said the Mekong Delta was an active economic zone, producing and processing a variety of products under the agricultural sector including rice, fisheries and fruit. He added that this was also the location of the national electricity-gas-fertiliser complex.

He pledged to create a favourable environment for overseas enterprises and American ones in particular to invest, and said that the success of those overseas companies was also the success of Viet Nam.

Representing the delegation, Kevin Thieneman, President of Caterpillar Asia said US investments in Viet Nam had focused on infrastructure, informatics, electricity, gas, aeroplane manufacturing, medical, bio-technology and banking services. He hoped that the Vietnamese government would continue to create better conditions for US enterprises to invest in long-term projects in Viet Nam. —VNS

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PM Dung vows to facilitate US investments

Prime Minister Nguyen Tan Dung has promised to create favourable
conditions for foreign investors, including those from the US , to
successfully do business in Vietnam .

The
government leader made the commitment while hosting a reception in Can
Tho city on Sept. 5 for a delegation from the US-ASEAN Business Council,
who is attending a Mekong Delta investment and development conference.

PM Dung noted with pleasure that economic, trade and
investment relations between Vietnam and the US are growing
fruitfully, with two-way trade exceeding 15.5 billion USD in 2009 and
expected to reach a higher level this year.

The flow
of US investment in Vietnam has been on the rise, making the US
sixth among foreign investors operating in the Southeast Asian country.

PM Dung told his guests that the Mekong Delta is a
region with dynamically economic development. It is a leading production
and processing centre for rice, aquatic products and fruits and is a
national hub of electricity and gas, he said.

The PM
applauded US-invested projects in Vietnam and the Mekong Delta in
particular, saying that they make positive contributions to the
enhancement of the bilateral relationship. “Your success is also our
success,” he stressed.

On behalf of the delegation,
President of Catepillar Asia Pte Ltd. Kevin Thieneman said US
companies are pouring more investments into Vietnam , especially in
infrastructure development, IT, power, gas, airplane engine
manufacturing, healthcare, biotechnology and banking.

Thieneman said he hoped that the Government of Vietnam would further facilitate long-term investments of US firms./.

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Vietnam Airlines plans Dung Quat jet fuel purchase

National carrier Vietnam Airlines said it plans to switch to locally-produced jet fuel to save transport costs.

Le Hoang Dung, spokesperson for Vietnam Airlines, said the carrier will give priority to local products and it is completing “necessary procedures” to buy Jet A1 fuel from the Dung Quat refinery.

Using local fuel will ease pressure for payment in foreign currencies and also cut the cost of transporting and storing imported fuel, he said.

The first 4,500-ton batch of jet fuel produced by Dung Quat was sold to a Singapore-based unit of BP on Tuesday.

The refinery is expected to produce between 200,000 and 300,000 tons of the fuel every year to be sold in both local and foreign markets.

Dung said Vietnam Airlines operates 300 flights every day and  has a huge demand for jet fuel. He said the carrier will have to check the quality of Dung Quat’s jet fuel carefully before using it.

Another local airline, Jetstar Pacific, said it also plans to use local fuel products as long as they are of high quality.

“As the (Dung Quat’s) fuel has just been exported, we want to wait for responses from foreign buyers,” said Ta Huu Thanh, deputy general director of Jetstar Pacific. “It’s very important to choose the right jet fuel because it’s about the safety for a lot of people.”

Jetstar Pacific is currently supplied by Vinapco, Vietnam’s largest jet fuel supplier and a trading arm of Vietnam Airlines. Vinapco imports jet fuel from other Asian countries. It held a monopoly in the local market until February this year, when Petrolimex began selling fuel to airplanes.

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