Nghi Son Refinery runs out of money, by May it is still not clear if there is enough gasoline or not

According to a report of the Ministry of Industry and Trade to the National Assembly deputies, the total supply of petroleum to the domestic market in 2021 is about 20.5 million m3, of which domestic production is about 14.27 million m3 (accounting for about 70%. demand), imported about 6.3 million m3 (accounting for 30% of demand).

Gasoline supply is still interrupted

In 2022, the total supply of petroleum to the domestic market is planned to be 20.7 million m3, of which domestic production is about 14.418 million m3, and imports are about 6,282 million m3.

In the country, from the beginning of January and February 2022, because Nghi Son Refinery cut production output to 55-80% of capacity and had technical problems for a time, production had to be stopped. Therefore, failure to ensure the supply of petrol and oil to the main traders of petrol and oil under signed contracts has affected the continuous supply of petroleum to the domestic market.

In the world market, geopolitical issues and the recent epidemic have greatly affected the supply of petroleum to the market, while gasoline demand increased when countries applied economic recovery measures. leading to difficulties for petroleum importers in competing to access the world supply at a reasonable price to import to make up for the shortfall from domestic production.

Notably, the Ministry of Industry and Trade said that Nghi Son Refinery had financial difficulties and some internal problems, so it did not have the funds to import crude oil to produce finished petroleum products.

According to a report of Nghi Son Refining and Petrochemical Company Limited, from the beginning of January 2022, the plant has reduced its capacity from 100% to 80% and then only at 55-60% of capacity.

Due to the reduction in production capacity, actual deliveries to domestic petroleum wholesalers in February 2022 have been reduced by 50% compared to the plan.

In March, the supply of gasoline to the market from domestic sources was still low compared to normal months because the supply of gasoline from domestic production continued to decrease (because Nghi Son Refinery and Petrochemical Plant continued to decrease). wattage).

Currently, Nghi Son Refinery and Petrochemical Plant has no plans to deliver goods to key traders in April and May, especially after May, it is unclear about the Plant’s ability to maintain production. Therefore, on February 22, 2022, the Ministry of Industry and Trade worked with the Vietnam Oil and Gas Group to assess the current situation of petroleum production and supply capacity of Nghi Son Refinery and agreed in the immediate future, The scenario for managing petroleum supply in the second quarter of 2022 for the domestic market does not include the supply from Nghi Son Refinery.

Accordingly, on February 24, 2022, the Ministry of Industry and Trade issued Decision No. 242/QD-BCT assigning additional import quotas to 10 petrol and oil key traders to make up for the shortfall in supply from domestic production (excluding the supply from the factory Nghi Son oil refinery) to ensure sufficient gasoline supply for the domestic market in the second quarter of 2022.

At the same time, the Ministry has also issued documents directing businesses to take measures to ensure the supply of petroleum to the market in all situations.

Luong Bang