Eight enterprises promise to purchase Dung Quat’s oil

Eight biggest fuel importers have confirmed that they will increase the purchases of fuel products from Dung Quat Oil Refinery in order to help the refinery to clear its big stocks.

Enterprises in response to the call by the Ministry of Industry and Trade, have promised to purchase more fuel products from Dung Quat Oil Refinery from early October. Petrolimex, which is now holding 60 percent of the petrol retail market share, has committed to buying 273,100 cubic metres in October. The giant distributor plans to buy 407,300 cubic metres more at least in November and December.

Besides, Petrolimex is also considering leasing a depot in December in order to help clear stocks for Dung Quat Oil Refinery.

Meanwhile, PV Oil has pledged to buy 392,000 cubic metres in the fourth quarter of 2010, and PETEC has committed to consuming 434,000 cubic metres.

Vinapco, the air petrol provider, has also confirmed that it will purchase 10,000 cubic metres from Dung Quat Oil Refinery in October. It will purchase 77,000 cubic metres more at least in November and December, including 50,000 cubic metres of JET A-1 air fuel.

According to PetroVietnam, even if enterprises join forces to purchase fuel products from Dung Quat Oil Refinery to help the refinery ease its stocks, it is estimated that 157,200 cubic metres will still remain unsold by the end of December 2010. However, the inventory level is considerably reasonable.

According to the Ministry of Industry and Trade (MOIT), by early October, 11 key fuel distributors had joined forces to consume products from Dung Quat Oil Refinery with the total volume accounting for 35 percent of the total volume used in the first nine months of the year. The ministry has urged PetroVietnam, the national oil and gas group, to instruct Binh Son Petrochemical Refinery Company to build up the detailed business plan for 2011.

The decisions to purchase products from Dung Quat Oil Refinery by fuel importers and distributors have been made after MOIT urged them to do that in order to help curb trade deficit.

In early October, a press conference was organized, where journalists were informed that Vietnamese enterprises kept importing fuel products from other countries, while domestic products remained unsold.

Importers and distributors explained that they have to continue import products because they can not cancel the contracts they signed before.

However, MOIT still has requested enterprises to delay the import plans to consume domestic products. PetroVietnam and other distributors were told to report to MOIT their plan to consume Dung Quat’s products prior to October 15.

Meanwhile, Vinapco said it has reduced the planned import volume in 2010 by 200,000 tons, because it plans to purchase Dung Quat’s products. However, Vinapco still can not buy domestic products because Dung Quat’s products have not gone through necessary procedures to be able to sell in the domestic market.- VnExpress

Tags: Dung Quat oil refinery