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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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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