Nghi Son committed to supply more than 1.8 million m3 of petroleum in the second quarter
The report of the Ministry of Industry and Trade said that Nghi Son Refining and Petrochemical Company Limited (NSRP) worked with the Product Distribution Branch of Nghi Son Oil Refinery (PVNDP) on the volume of goods committed to sell in the second quarter. 2022 under the petroleum product consumption contract (FPOA).
Accordingly, the output NSRP committed to supply for the whole second quarter of 2022 is 1.83 million m3 (April is 590,000 m3; May is 630,000 m3; June is 610,000 m3).
“This announced output is the official off-take volume that is legally binding on PVNDP,” said the Ministry of Industry and Trade.
However, the implementation of the above production plan depends on the implementation of NSRP’s financial solutions. Currently, the National Oil and Gas Group (PVN) has issued a Resolution approving the FPOA early payment mechanism until the end of May 2022. Therefore, NSRP has enough conditions to operate stably until the end of the second quarter of 2022.
“PVNDP has sent an official document to NSRP requesting NSRP to have the obligation to produce and supply output of the second quarter of 2022 to PVNDP as committed and NSRP must not give any conditions attached,” the report said. Report of the Ministry of Industry and Trade emphasized.
According to a report from the Ministry of Industry and Trade, PVNDP has been implementing a detailed plan of delivery and receipt of goods for domestic petroleum wholesalers according to contracts signed in April 2022 and preparing a schedule Delivery for May 2022. For the delivery for June 2022, PVND is working closely with NSRP and petroleum wholesalers to update the plan as soon as possible.
According to the Ministry of Industry and Trade, petroleum supply will fully meet demand in the second quarter of 2022, and inventories will be about 1.5 million m3 in the third quarter (Artwork).
Expected demand for petroleum in the second quarter of 2022 is about 5.2 million m3. Meanwhile, the expected supply of petroleum in the second quarter of 2022 is about 6.7 million m3, including: Supply from domestic production plants ( Nghi Son oil refinery is expected to be 1.8 million m3; Binh Son oil refinery is expected to be 1.9 million m3); The import source is about 1.5 million m3 (excluding the fact that enterprises have to comply with Decision No. 242/QD-BCT is 800 thousand m3 / month, equivalent to 2.4 million m3 in the whole second quarter) and the inventory source from the first quarter to (1.5 million m3).
“With the above supply, it will meet the consumption demand of the second quarter and the inventory will be about 1.5 million m3 in the third quarter,” the Ministry of Industry and Trade said.
In the first quarter, the domestic petroleum product market faced a local shortage of goods in the short term. Accordingly, the domestic petroleum supply is affected by the fact that Nghi Son Oil Refinery (accounting for 35-40% of total supply) has sharply reduced production capacity (in January and February, its capacity was reduced to a levels of 85%, 60% and 55%) and failed to supply enough petroleum output to the market as committed. Meanwhile, the source of petroleum from imports faced difficulties due to the sharp increase in prices and great competition when the supply was interrupted due to the armed conflict between Russia and Ukraine.
Faced with the above situation, the Ministry of Industry and Trade has directed key petroleum businesses to increase imports to meet domestic demand.
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