The Nghi Son Refinery will temporarily stop production from August 25 for maintenance. (Photo: tienphong.vn)Hanoi (VNS/VNA) - Major petroleum enterprisesare planning to increase petrol imports to compensate for the shortage ofpetroleum supply due to the temporary closure of Nghi Son Refinery for maintenance fromAugust 25.
A representative of the Vietnam National Petroleum Group(Petrolimex) said that the Nghi Son Refinery will still supply petrol productsas normal in August but will stop deliveries in September andOctober.
Petrolimex has known about the overall maintenance plan of the Nghi SonRefinery, so it has signed acontract to import petrol products to meet domestic demand during themaintenance at Nghi Son Refinery which is expected to last for 55 days.
Chairman of the Vietnam Oil Corporation (PV OIL) Cao Hoai Duongalso said that PV OIL has proactively planned to import petroleum products ofall kinds since the beginning of the year to ensure the supply for the market.
Duong also said that the Vietnam Oil and Gas Group (Petrovietnam) andtwo oil refineries, Dung Quat and Nghi Son, worked closely to avoid themaintenance at the same time, affecting the supply for the domestic market.
Binh Son Refining and Petrochemical Company (BSR), the unit thatmanages and operates Dung Quat Oil Refinery Plant, said the refinery isrunning at full designed capacity to meet the market demand for petroleum.
BSR also plans to ensure the supply of crude oil for therefinery. BSR's reserves of crude oil now ensure Dung Quat Oil Refinery will operateat high capacity in both the third and fourth quarters.
So Hasegawa, General Director of Nghi Son Refining andPetrochemical Company Limited (NSRP), said NSRP is coordinating and workingclosely with relevant authorities to ensure that the overall maintenance willnot affect the operation of the domestic petroleum market as well as consumers.
In 2023, NSRP estimates to process about 7.96 million tonnes ofcrude oil. NSRP's petroleum products now meet about 40% of domestic gasolinedemand.
According to the General Department of Customs, by July 15, Vietnamimported more than 5.68 million tonnes of petroleum, 600,000 tonnes higher thanthe same period last year.
Deputy General Director of the Vietnam Commodity Exchange Duong DucQuang said oil prices are on the rebound due to concerns that supply willshrink in major exporting countries in the world.
"However, the prices will struggle to surpass the levelof $100 per barrel, because the economic outlook and consumption in majoreconomies is still variable," Quang said.
"In the scenario of a decrease in both supply anddemand, the oil prices will likely be relatively stable in the second half of 2023,possibly ranging between 65 USD and 85 USD per barrel."
Gasoline prices play an important role in the transportationcosts, accounting for 35-40%, so fluctuations in oil prices will affect theprices of many other goods.
"With a stable oil price scenario, it is expected to keepstability in commodity prices on the market, thereby curbing inflation at thetarget level and supporting economic growth," Quang said.
According to the Ministry of Industry and Trade, by 2045, Vietnamis estimated to lack about 12 million tonnes of petroleum per year and 3.5million tonnes of petrochemical products per year.
With limited technological and financial capacity, Vietnam needsto work with foreign partners to get the most advanced technology possible aswell as to mobilise capital for the development of the petrochemicalindustry./.
A representative of the Vietnam National Petroleum Group(Petrolimex) said that the Nghi Son Refinery will still supply petrol productsas normal in August but will stop deliveries in September andOctober.
Petrolimex has known about the overall maintenance plan of the Nghi SonRefinery, so it has signed acontract to import petrol products to meet domestic demand during themaintenance at Nghi Son Refinery which is expected to last for 55 days.
Chairman of the Vietnam Oil Corporation (PV OIL) Cao Hoai Duongalso said that PV OIL has proactively planned to import petroleum products ofall kinds since the beginning of the year to ensure the supply for the market.
Duong also said that the Vietnam Oil and Gas Group (Petrovietnam) andtwo oil refineries, Dung Quat and Nghi Son, worked closely to avoid themaintenance at the same time, affecting the supply for the domestic market.
Binh Son Refining and Petrochemical Company (BSR), the unit thatmanages and operates Dung Quat Oil Refinery Plant, said the refinery isrunning at full designed capacity to meet the market demand for petroleum.
BSR also plans to ensure the supply of crude oil for therefinery. BSR's reserves of crude oil now ensure Dung Quat Oil Refinery will operateat high capacity in both the third and fourth quarters.
So Hasegawa, General Director of Nghi Son Refining andPetrochemical Company Limited (NSRP), said NSRP is coordinating and workingclosely with relevant authorities to ensure that the overall maintenance willnot affect the operation of the domestic petroleum market as well as consumers.
In 2023, NSRP estimates to process about 7.96 million tonnes ofcrude oil. NSRP's petroleum products now meet about 40% of domestic gasolinedemand.
According to the General Department of Customs, by July 15, Vietnamimported more than 5.68 million tonnes of petroleum, 600,000 tonnes higher thanthe same period last year.
Deputy General Director of the Vietnam Commodity Exchange Duong DucQuang said oil prices are on the rebound due to concerns that supply willshrink in major exporting countries in the world.
"However, the prices will struggle to surpass the levelof $100 per barrel, because the economic outlook and consumption in majoreconomies is still variable," Quang said.
"In the scenario of a decrease in both supply anddemand, the oil prices will likely be relatively stable in the second half of 2023,possibly ranging between 65 USD and 85 USD per barrel."
Gasoline prices play an important role in the transportationcosts, accounting for 35-40%, so fluctuations in oil prices will affect theprices of many other goods.
"With a stable oil price scenario, it is expected to keepstability in commodity prices on the market, thereby curbing inflation at thetarget level and supporting economic growth," Quang said.
According to the Ministry of Industry and Trade, by 2045, Vietnamis estimated to lack about 12 million tonnes of petroleum per year and 3.5million tonnes of petrochemical products per year.
With limited technological and financial capacity, Vietnam needsto work with foreign partners to get the most advanced technology possible aswell as to mobilise capital for the development of the petrochemicalindustry./.
VNA
