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, said PetroVietnam general director Pham Dinh Thuc at a press briefing yesterday at PetroVietnam headquarters in Ha Noi.

Domestic petrol consumption has ended up 10 per cent lower than predictions for this year, while production at the Dung Quat Oil Refinery was now exceeding the year’s plan by 25 per cent, 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 per cent of initial capacity this year. PetroVietnam has urged importers to prepare to receive locally-produced petrol in the near future. — VNS

Tags: Vietnam Petroleum, Vietnam petroleum imports