Vietnam government urged to limit petrol imports

The Nghi Son Refinery, which is now in its trial phase, is burdened by unsold inventories, Chairman of Thanh Hoa Provincial People's Committee Nguyen Dinh Xung said at a recent government meeting.

The unsold inventories signal challenges in product sale when the oil refinery commercially operates this August/September. If the current situation continues, it will cause difficulties for enterprises and negatively affect the province’s budget, says Xung. 

Thanh Hoa's authorities suggested that the Government and the Ministry of Industry and Trade set up a mechanism to consume all products from the refinery. 

"We suggest that the government issues policies to limit petrol imports and prioritize products from Nghi Son refinery," Xung said.

A month ago, the $9 billion refinery produced its first commercial gasoline product – more than 5,000 cubic meters of RON92 gasoline. 

According to Thanh Hoa authorities, during the trial period, Nghi Son oil refinery has produced 14 percent of the province’s total industrial production value. With a planned production of 4-4.3 million tons of gasoline when commercial operations officially begin in August or September 2018, the plant is expected to contribute more than 15 percent to the province's growth. 

The Nghi Son Refinery, located in the Nghi Son Open Economic zone in Thanh Hoa province, will have a capacity of 200,000 barrels of crude oil per day in the first operational phase, equaling 10 million tons of crude oil per year. This is almost double that of the Dung Quat oil refinery in Quang Ngai Province. 

This project has been invested in by 4 domestic and international investors: Vietnam National Oil and Gas Group (PetroVietnam), Kuwait Petroleum International (Kuwait), Idemitsu Kosan and Mitsui Chemicals (Japan). Total investment for the project is $9 billion. 

It is expected that the Nghi Son and Dung Quat refineries will together meet 80 percent of Vietnam’s fuel demand.