Major petroleum enterprises are planning to increase petrol imports to compensate for the shortage of petroleum supply due to the temporary closure of Nghi Sơn Refinery Plant for maintenance from August 25.

 

A representative of the Việt Nam National Petroleum Group (Petrolimex) said that Nghi Sơn Refinery will still supply petrol products as normal in August but will stop deliveries in September and October.

 

Petrolimex has known about the overall maintenance plan of Nghi Sơn Refinery, so it has signed a contract to import petrol products to meet domestic demand during the maintenance at Nghi Sơn Refinery which is expected to last for 55 days.

 

Chairman of the Việt Nam Oil Corporation (PVOIL) Cao Hoài Dương also said that PVOIL has proactively planned to import petroleum products of all kinds since the beginning of the year to ensure the supply for the market.

 

Dương also said that the Việt Nam Oil and Gas Group (Petrovietnam) and two oil refineries, Dung Quất and Nghi Sơn, worked closely to avoid the maintenance at the same time, affecting the supply for the domestic market. 

 

Bình Sơn Refining and Petrochemical Company (BSR), the unit that manages and operates Dung Quất Oil Refinery Plant, said the refinery is running at full designed capacity to meet the market demand for petroleum.

 

BSR also plans to ensure the supply of crude oil for the refinery. BSR's reserves of crude oil now ensure Dung Quất Oil Refinery will operate at high capacity in both the third and fourth quarters.

 

So Hasegawa, general director of Nghi Sơn Refining and Petrochemical Company Limited (NSRP), said NSRP is coordinating and working closely with relevant authorities to ensure that the overall maintenance will not affect the operation of the domestic petroleum market as well as consumers.

 

In 2023, NSRP estimates to process about 7.96 million tonnes of crude oil. NSRP's petroleum products now meet about 40 per cent of domestic gasoline demand.

 

According to the General Department of Customs, by July 15, Việt Nam imported more than 5.68 million tonnes of petroleum, 600,000 tonnes higher than the same period last year.

 

Deputy General Director of the Việt Nam Commodity Exchange Dương Đức Quang said oil prices are on the rebound due to concerns that supply will shrink in major exporting countries in the world.

 

"However, the prices will struggle to surpass the level of $100 per barrel, because the economic outlook and consumption in major economies is still variable," Quang said.

 

"In the scenario of a decrease in both supply and demand, the oil prices will likely be relatively stable in the second half of 2023, possibly ranging between $65 and $85 per barrel."

 

Gasoline prices play an important role in the transportation costs, accounting for 35-40 per cent, so fluctuations in oil prices will affect the prices of many other goods.

 

"With a stable oil price scenario, it is expected to keep stability in commodity prices on the market, thereby curbing inflation at the target level and supporting economic growth," Quang said.

 

According to the Ministry of Industry and Trade, by 2045, Việt Nam is estimated to lack about 12 million tonnes of petroleum per year and 3.5 million tonnes of petrochemical products per year.

 

With limited technological and financial capacity, Việt Nam needs to work with foreign partners to get the most advanced technology possible as well as to mobilise capital for the development of the petrochemical industry. — VNS