Second Dung Quat’s suspension will add to petrol shortage

Vietnamese petroleum wholesalers will have to import one million tonnes of petroleum during a two-month suspension of Dung Quat Oil Refinery.

Nguyen Hoai Giang, General Director of Binh Son Refining and Petrochemical Co. Ltd (BSR), the facility’s operator, said the suspension starting in July is for the regular maintenance.

On March 23, Dung Quat halted operations for nearly two weeks for equipment checks. This was in preparation for the large-scale maintenance.

The total cost for maintenance will reach USD25 million, excluding the cost of materials and equipment.

Currently, Dung Quat has the capacity to produce roughly 1,000 tonnes of petroleum products, worth VND20 billion (USD956,937) per day. Up to 90% of these products are sold to Vietnam National Petroleum Corporation (Petrolimex), Petec Petroleum Material Joint Stock Company (Petec) and PetroVietnam Oil Corporation (PV Oil).

The refinery, the first of its kind in Vietnam, will raise its capacity to nearly 10 million tonnes per year by 2015, from the current 6.5 million tonnes. Once Dung Quat reaches its full capacity, it will help to satisfy domestic fuel demand, which now relies on imports for all but 33% of its needs. – Dantri

Tags: Dung Quat oil refinery