Vietnam to have made-in-Vietnam oil and petrol products
Ngoc said that the oil refinery will become officially operational on February 25, 2009. To date, 98.5% of works have been completed, allowing the oil refinery to be put into operation on schedule.
What kinds of products will be launched onto the market from the Dung Quat oil refinery?
The oil refinery has been designed to churn out nine products, including propylene, 150,000 tonnes a year. We have signed a contract with Marubeni on Japan’s consumption of the product until the construction of the polypropylene (PP) workshop at Dung Quat is finished, expected at the end of October 2010. When the workshop becomes operational, propylene will be sent to the PP workshop and made into plastic beads to serve local industries.
The other products are LPG, liquidised gas, with the capacity of 300,000 tonnes per annum, petrol of different types, A90, A92 and A95, 1.9mil tonnes, fuel for jet engines, and petrol for aircrafts (jet A1), 360,000 tonnes at maximum, diesel, 3mil tonnes per annum, and FO, 400,000 tonnes a year.
Dung Quat oil refinery is scheduled to run at 60-65% designed capacity from February to June 2009 and 70% of designed capacity from June-August. As of August 2009, it will run at 100% capacity. It is expected that in 2009, the oil refinery will consume approximately 4mil tonnes of crude oil, producing 3.6mil tonnes of products. As of 2010, it will meet 30% of the country’s demand.
Does PetroVietnam plan to expand the oil refinery?
PetroVietnam is considering upgrading the capacity of the oil refinery, and the optimal solution is to increase the capacity of the existing facilities at Dung Quat economic zone. This solution would save investment capital, requiring the fewest adjustments and the shortest time. When we have a big oil refinery, a 5% or 10% increase in capacity will be significant. We don’t have to make heavy investment in equipment, but can raise capacity and gain high economic efficiency.
The second solution is to install a second production line, taking full advantage of labour resources, peripheral support, infrastructure and deep water seaports.
Does this mean that Vietnamese people will have cheap petrol and oil products in a short time?
Dung Quat oil refinery will operate under the management of the government and PetroVietnam. Petrol and oil prices will depend on the government’s policies regarding the stabilisation of the market and sustainable development. However, I can say that the sale prices of products from Dung Quat oil refineries will be competitive and follow market laws.
