Nghi Son refinery output may fall 25% due to technical issues

Nghi Son Refinery and Petrochemical complex in Thanh Hoa province may have its output reduced by 20-25% in the first 10 days of January due to technical issues at its residue fluid catalytic cracking (RFCC) section.

Minister of Industry and Trade Nguyen Hong Dien has asked Binh Son Refining and Petrochemical JSC and Nghi Son Refinery and Petrochemical LLC, operators of the Dung Quat and Nghi Son oil refineries, to utilize reserves and other sources to ensure supply for the country.

The minister also requested petroleum wholesalers to find supply sources and enhance imports to offset the associated reduced supply.

Vietnam has two operational oil refineries - Nghi Son Refinery and Petrochemical complex in Thanh Hoa province, and Dung Quat Refinery in Quang Ngai province, both in the central region.

Nghi Son is a $9 billion refinery co-owned by Petrovietnam, Kuwait Petroleum Europe B.V. (KPE), and Japan’s Mitsui Chemical and Idemitsu Kosan Co. Dung Quat Refinery is a Petrovietnam subsidiary and has received more than $3 billion in investments.

The two refineries can provide about 14 million tons of petroleum products annually, meeting about 70% of Vietnam’s present demand, according to the ministry.

Vietnam’s petroleum output increased 13.7% year-on-year to 15.69 million tons in 2022, according to the General Statistics Office. The December figure reached $1.93 million tons, up 7.4%. The country imported 9.1 million tons worth $9.23 billion last year, up 30.9% and 124.8%, respectively.