Nghi Son Refinery and Petrochemical Complex has enough oil inventory to ensure stable production through May

Nghi Son Refinery and Petrochemical Complex in Vietnam’s central province of Thanh Hoa has secured sufficient crude oil supply to maintain continuous operations through the end of May, said its executive.

The complex - a joint venture involving Vietnamese, Japanese, and Kuwaiti partners - is one of the country’s largest oil refining facilities, with a designed capacity of about 200,000 barrels per day, or roughly 10 million tons a year.

Under normal conditions, it supplies around 35% of Vietnam’s domestic fuel demand, while also producing petrochemical products for regional markets.

During a visit to the site on Sunday, Prime Minister Pham Minh Chinh was told by the Nghi Son complex's general director Kazuaka Yamato that the plant has been operating at full capacity throughout March and has secured sufficient crude feedstock to sustain optimal operations through May.

To prioritize domestic energy needs, the complex has scaled back petrochemical output and shifted focus toward fuel production, particularly jet fuel, he noted.

Despite stable operations, the complex's management called on the local government to support access to financing and ensure more flexible crude supply sourcing. They proposed tax relief on certain feedstocks to ease cost pressures. Such measures would help ensure stable supply to the domestic market amid volatile global energy prices, they argued.

Welcoming the proposals, Prime Minister Pham Minh Chinh praised efforts by stakeholders to secure crude supply. He said that Vietnam will continue working with international partners to ensure stable input flows for the refinery.

The government is seeking to facilitate oil shipments through critical routes such as the Strait of Hormuz, a key transit corridor affected by geopolitical tensions.

The cabinet leader also urged the project stakeholders to diversify crude supply sources, describing it as both an urgent priority and a long-term solution.

As part of broader energy security efforts, Vietnam plans to fast-track construction of a strategic crude oil reserve near the Nghi Son complex. Authorities are studying a storage facility with capacity of about one million tons on a 60-hectare site in Hai Binh ward, adjacent to the complex.

The government chief has instructed local authorities to expedite land clearance and directed Petrovietnam to be ready to implement the project under urgent conditions. In addition, the government is considering additional gas storage infrastructure in the area to further strengthen energy resilience.