Refinery signs four contracts for distribution

The Binh Son Refining and Petrochemical Co Ltd, the operator of Dung Quat Oil Refinery, signed contracts on Tuesday in Ha Noi with four local partners to distribute the refinery’s petroleum products next year.

Under the contracts, Dung Quat will supply a combined volume of 4.7 million cu.m of petrol products, including Mogas 92, Mogas 95, diesel, Jet A1 plane fuel and fuel oil (FO).

Binh Son Co will provide 2 million cu.m for the Viet Nam National Petroleum Corporation (Petrolimex), 1.5 million cu.m for the PetroVietnam Oil Corporation, 1 million cu.m for the Petec Trading and Investment Corporation and 200,000cu.m for the Viet Nam Air Petrol Company.

Binh Son Co was also in negotiation with other distributors about the terms and conditions of next year contracts and it was expected to reach agreement with them by the end of this month. The deals are intended to satisfy local fuel demands with products from Dung Quat, despite prices being set at the same rate as imported oil products.

Dung Quat was put into operation in February last year and is running at full capacity. The refinery has churned out 7.82 million cu.m of various kinds of petrol products so far.

It is estimated that the refinery will produce 5.8 million cu.m of petrol products next year. The factory will halt operation next July and August for scheduled maintenance.

The agreements reached with local distributors would help the refinery map out future production and distribution plans, Binh Son Co said. — VNS

Tags: Dung Quat oil refinery