Fuel coverage vital to soothe business performance
Fuel coverage vital to soothe business performance
The Ministry of Industry and Trade has pledged to provide sufficient fuel for the economy to ensure smooth performance of businesses and the domestic market.
The ministry (MoIT) last week reported that from now until the year’s end, sufficient petrol will be ensured for the public and businesses “in all situations”.
“The MoIT will focus on accelerating the disbursement of public investment capital, and review all remaining problems in order to put into operation key projects in electricity, oil and gas, processing, manufacturing, and minerals,” it stated.
The MoIT will strengthen the direction and supervision of the implementation of projects in the oil and gas sector. It will also promptly report to the state steering committee of important national programmes and schemes related to energy development so as to direct the removal of difficulties.
The MoIT will also closely follow the situation of coal supply for electricity production to provide timely advice and report to the ministry’s leaders to consider and direct the settlement of arising issues.
According to statistics from the MoIT, the total imported and domestically produced assorted fuel output in the first six months of this year hit an estimated 12.41 million tonnes, tantamount to about 15.2 million cubic metres. Of which, imports were responsible for 44.5 per cent, and domestic produced products hit 55.5 per cent.
In the period, the total consumption of assorted fuel is estimated to have stood at 13.2 million cu.m, and inventory is also estimated to have sat at 1.85 million of cu.m.
“Thus, we have met all fuel supplies for the domestic market,” said Deputy Minister of Industry and Trade Phan Thi Thang.
It is forecasted that in the second half of this year, the Dung Quat Oil Refinery in the south-central province of Quang Ngai and the Nghi Son Oil Refinery in the north-central province of Thanh Hoa will produce 8.26 million tonnes of assorted fuel, equivalent to 9.9 million cu.m.
Last month, PetroVietnam Exploration Production Corporation, PetroVietnam Oil Corporation, and Binh Son Refining and Petrochemical JSC (BSR) inked a contract to supply crude oil from the offshore Dai Hung field to the Dung Quat Oil Refinery for the next three years.
BSR is a subsidiary of PetroVietnam and is accountable for operating the $3 billion Dung Quat refinery. Dung Quat, with an annual processing capacity of 6.5 million tonnes of crude oil, was the first oil refinery in the country and is the second-largest, after the Nghi Son refinery.
Since 2021, the three entities involved have carried out a similar contract for the long-term supply of Dai Hung crude oil for the plant.
Meanwhile, the $9.3 billion Nghi Son plant is funded by PetroVietnam (25.1 per cent), Kuwait Petroleum International (35.1 per cent), and the Japanese firms Idemitsui Kosan (35.1 per cent) and Mitsui Chemicals (4.7 per cent).
Also according to the MoIT, in the last six months of this year, an estimated volume of about 4.5 million tonnes of assorted fuel, or 5.4 million cu.m will be imported. The total imported and produced volume will be as much as 12.76 million tonnes, or around 15.3 million cu.m.
It is also estimated that in this period, the total consumption will be about $13.2 million cu.m, or nearly 2.2 million cu.m a month. The inventory will be about 1.8-2 million tonnes.
“The MoIT will closely follow the production activities of the two oil refineries, traders’ petrol imports, and the domestic fuel consumption situation with a view to taking proper measures to ensure sufficient petrol supplies for the domestic market,” the MoIT said.
