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In 2009, Dung Quat Oil Refinery officially became operational with the designed capacity of 6.5 million tons of crude oil per annum, satisfying 30 percent of the domestic demand (it provides 2.746 million tons of petrol and 3.068 million tons of DO).
The Nghi Son Complex has designed capacity of 10 million tons per annum, and would provide 8.75 million tons of products of different kinds, satisfying 40 percent of domestic demand. (2.307 million tons of petrol and 3.674 million tons of DO).
Other condensate plants such as PVOil Phu My, Saigon Petro, Nam Viet Oi and Dong Phuong have the designed capacity of 690,000 tons of petrol per annum.
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The Nghi Son Refinery & Petrochemicals Complex with capacity of 10 million tons per annum will open in 2018, changing the supply-demand situation of Vietnam’s petroleum market. |
With the predicted economic growth in the next five years, the total demand for petroleum products in 2018-2022 is expected to reach 6.5 million tons of petrol and 8.5 million tons of DO.
Meanwhile, Dung Quat and Nghi Son can provide 6 million tons of petrol a year and 7 million tons of DO, satisfying 92 percent and 82 percent, respectively, of domestic demand.
This means that Vietnam would still lack 0.8 million tons of petrol and 1.8 million tons of DO a year, which would be fed by imports from regional countries such as Singapore, Malaysia, Thailand, SK and China.
GDC said Vietnam imported 1.12 million tons of petroleum products of different kinds in May 2017 alone, worth $551 million, an increase of 6.9 percent in quantity and 1.5 percent in value compared with the month before.
As such, the total import turnover of petroleum products in the first five months of the year reached 5.1 million tons, valued at $2.7 billion, a 4.6 percent decrease in volume, and 30.8 percent increase in value in comparison with the same period last year.
The imports in the first five months of the year mostly came from Singapore (2.12 million, worth $1.05 billion, down by 0.6 percent in quantity, but up by 34.8 percent in value), South Korea (1.2 million tons, $728 million, up by 74.6 percent in volume and 111.8 percent in value) and Malaysia (1 million tons, $465 million, down by 33 percent in volume and 14.9 percent in value)
To compete with petroleum products from Nghi Son Complex and imports, the Binh Son Refining & Petrochemical Co Ltd (BSR) needs to build up a reasonable business strategy. Not only targeting the domestic market, BSR is considering exporting products to regional countries including Laos, Cambodia and Indonesia.
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