Dung Quat oil refinery plans to halt production due to COVID-19

Binh Son Refining and Petrochemical (BSR) is planning to halt production at the Dung Quat oil refinery as demand for petroleum falls due to COVID-19.

 

Based in Quang Ngai Province, the US$3 billion oil refinery has an annual capacity of 6.5 million tonnes of crude oil.

A report from BSR said petroleum sales had fallen badly due to the impacts of COVID-19.”

BRS said the pandemic had caused a sharp decrease in transportation demand, leading to a decrease of between 30 per cent and 40 per cent in domestic gasoline consumption in the first quarter over the same period of previous years.

A company representative told local media that social distancing meant domestic petroleum demand would continue to fall in April, adding: “Both the Dung Quat and Nghi Son refineries must reduce capacity.”

The firm said gasoline inventories at Dung Quat had reached more than 90 per cent, so they had been forced to store products at other depots at great cost.

The representative told Baodautu.vn the firm was considering its options, adding that if inventories rose to high, it would be forced to halt operations at Dung Quat and wait for the market to recover.

BSR asked the Government to minimise or suspend imports of petroleum products and provide financial support such as disbursement of zeros and tax breaks for the firm.

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