Nghi Son refinery seeks permit to export petroleum products

The Ministry of Industry and Trade said if the Nghi Son Refinery and Petrochemical Limited Liability Company’s products meet export standards it would be a positive sign, one indicating the competitiveness of Vietnamese petroleum products globally.

But it noted that such a license has to be considered on a case-by-case basis to ensure exports will not impact on domestic supply and to avoid any possible transfer pricing to evade tax.

If the approval is granted, this would be the first time Vietnam, a net importer of fuel, has allowed domestically-made oil products to be exported.

The Thanh Hoa Province-based refinery, situated in the Nghi Son open economic zone, has a capacity of 200,000 barrels of crude oil a day in the first phase, equivalent to 10 million tons a year.

Nghi Son is Vietnam's second oil refinery. Its capacity is almost double that of Dung Quat in central Quang Ngai Province, the country’s first refinery.

The $9 billion refinery is 35.1 percent owned by Japan’s Idemitsu Kosan Co, 35.1 percent by Kuwait Petroleum, 25.1 percent by state-run PetroVietnam and 4.7 percent by Mitsui Chemicals Inc.

The plant began production of RON92 gasoline last May though its official commercial operation has now been a year later than scheduled.

Leaders of central Thanh Hoa Province in a recent meeting urged the government to limit petroleum imports and prioritize use of the company’s products.