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Vietnam Refinery Seeks Approval for Exporting Oil Products

Vietnam Refinery Seeks Approval for Exporting Oil ProductsVietnam Refinery Seeks Approval for Exporting Oil Products

Vietnam’s Nghi Son oil refinery is seeking approval to export oil products, as high inventories and preexisting import contracts have limited domestic fuel demand, said three industry sources on Monday.  If the approval is granted, this would be the first time Vietnam, a net importer of fuel, has allowed oil product exports produced domestically, Reuters reported.

The fuel shipments could also weigh on regional margins at a time when supplies are expected to start flowing from new projects in Malaysia and China.  Nghi Son Refinery and Petrochemical LLC, owner of the 200,000 barrels-per-day refinery, has ramped up output to more than 50% of capacity since starting up earlier this year and this has contributed to high fuel inventories, the sources said.

“We are seeking the approval from the Ministry of Industry and Trade to export our fuel products,” one of the sources told Reuters, declining to be named as he was not authorized to speak with media.  “We have been selling part of our fuel output to the local market, but local traders and consumers are unable to absorb all of our products because they have already placed long-term orders with international suppliers, pending our official commercial production.”  The Ministry of Industry and Trade did not immediately comment on the export request.

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