PM seeks to accelerate construction of strategic oil reserve near one of the country's biggest refineries

PM seeks to accelerate construction of strategic oil reserve near one of the country's biggest refineries

Việt Nam would continue working with relevant countries and partners to secure stable crude oil inputs for the refinery, while promoting solutions to facilitate the transportation of petroleum products through the Strait of Hormuz to Việt Nam, including crude supply for the plant.

Prime Minister Phạm Minh Chính and leaders during the survey of a proposed site for strategic petroleum reserve in the Nghi Sơn Economic Zone during a visit to the central province of Thanh Hóá on March 29. — VNA/VNS Photo

Prime Minister Phạm Minh Chính yesterday visited the Nghi Sơn Refinery and Petrochemical Plant to review its operations and fuel supply, and surveyed a proposed site for a strategic petroleum reserve in the Nghi Sơn Economic Zone amid a global oil crisis.

Acting Minister of Industry and Trade Lê Mạnh Hùng and Thanh Hóa Party Secretary Nguyễn Doãn Anh, along with leaders of ministries, central agencies and local authorities, also accompanied the Government leader on the visit to the site.

The Nghi Sơn Refinery and Petrochemical Plant is a joint venture involving major corporations from Việt Nam, Japan and Kuwait. It is currently one of the country’s largest refineries, with a designed capacity of around 200,000 barrels of crude oil per day (equivalent to 10 million tonnes per year).

Under normal conditions, the plant supplies petroleum products to the domestic market, meeting roughly 35 per cent of national demand, while also providing petrochemical products to the regional market.

At the working session, leaders of Nghi Sơn Refinery and Petrochemical LLC reported that the plant has been operating stably at full capacity throughout March and has secured sufficient crude oil supplies to maintain optimal operations through the end of May. This aims to maximise output of petroleum products to meet domestic demand, under the close coordination and direction of the Ministry of Industry and Trade.

The company also expressed appreciation for consistent support from the Vietnamese Government, relevant ministries, local authorities, investors and partners. Such support – particularly in facilitating access to potential regional supply sources and promoting diplomatic efforts – has played a key role in helping the company navigate current market pressures.

After hearing the reports, Chính commended the efforts of all parties, along with the support of the Vietnamese Government, in ensuring crude oil supply for the project.

He said Việt Nam would continue working with relevant countries and partners to secure stable crude oil inputs for the refinery, while promoting solutions to facilitate the transportation of petroleum products through the Strait of Hormuz to Việt Nam, including crude supply for the plant.

The PM also said that Việt Nam would expedite the construction of a strategic crude oil reserve in the Nghi Sơn area to serve the refinery and other needs. He urged joint venture partners to quickly diversify crude oil supply sources, stressing that this is both an urgent task and a long-term solution.

Chính called for renewed cooperation based on harmonised interests and shared risks, emphasising sincerity in listening, goodwill in sharing and effectiveness in action. He suggested the plant temporarily limit production of other petrochemical products and prioritise petroleum output, especially aviation fuel.

The Government leader acknowledged and instructed relevant ministries and agencies to promptly address proposals related to taxes on certain input materials for refining and petrochemicals. Issues beyond their authority should be reported immediately to higher levels.

Previously, during a site survey in Thanh Hóa Province's Hải Bình Ward – within the Nghi Sơn Economic Zone – the PM instructed local authorities to work urgently with affected households to accelerate site clearance.

He also directed the trade ministry to develop the project in a way that allows for rapid deployment in emergency situations, and to assign capable entities to implement it, with the overarching goal of diversifying supply sources and ensuring Việt Nam's energy security.

In prior discussions with leaders of several countries with significant petroleum reserves and production capacity, the PM had proposed cooperation and support in building strategic reserves in Việt Nam, including at the Nghi Sơn area. 

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