Refinery denies shut-down rumours
Refinery denies shut-down rumours
A spokesman for the Dung Quat oil refinery has denied rumours that the plant had suspended operations, confirming that it was running at full capacity.
"The plant is huge and very important to the economy. It has been operating since the one-week stoppage in August," Nguyen Hoai Giang, general director of Binh Son Petro-Chemical Refinery Co, was quoted as saying by the Tuoi Tre (Youth) newspaper.
Since it began operation in 2009, the refinery has had to suspend operations several times for technical adjustments.
Giang, who spoke at a press meeting on Monday, said these stoppages had all been planned one or two weeks in advance.
"Technical hitches are very normal for a such big plant like Dung Quat. We are trying to solve all hitches and smoothly run the plant before finally assuming transfer of business from the main contractor Technip at the end of this year," he added.
As a result of the temporary shutdowns, the plant has been forced to import foreign petrol and oil to compensate for its reduced supply to wholesalers.
Input expenditures for the oil refinery have exceeded the refinery's product prices, according to Giang.
Ninety per cent of the refinery's crude oil comes from local sources, which is more expensive and harder to refine than imported oil because of its chemical components.
Giang also noted that the State regulated the selling price as well.
"That is why the plant must be upgraded quickly so we can refine other kinds of oil, and use less expensive imported crude oil," Giang said.
Since its opening, the refinery has received many incentives from the Government.
Its product prices, for example, have been increased by 3- 7 per cent, equivalent to the import tax on foreign-refined products.
Moreover, the Binh Son Petro-Chemical Refinery Co, pays a 10 per cent corporate tax over a 30-year period, compared to the 25 per cent rate paid by many other companies.
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