MOSCOW (MRC) -- Vietnam will auction 100 MM liters (26.4 MMg) of gasoline from its national reserves, state media reported on Tuesday, as a supply shortage enters its second month, said Hydrocarbonprocessing.
The Southeast Asian country has had to tap into its fuel reserves since its largest refinery cut production last month due to a disagreement between shareholders over financing for crude oil procurement. A source familiar with Nghi Son refinery's operations, who declined to be identified, said it would not resume full production at least until the end of April, later than the mid-March target announced by the trade and industry ministry earlier this month.
The 200,000 bpd refinery is currently operating at 55%-60% of capacity. It typically meets a third of Vietnam's needs. A power outage hit the refinery on Monday, forcing some of its units to shut down, two sources familiar with the matter said late on Tuesday, without elaborating. On Monday, Vietnam raised its RON92 gasoline price by 3.9% to a record high 25,530 dong (USD1.12) per liter, amid a global surge in energy prices.
In a bid to reassure businesses and consumers, the industry ministry has said it would ensure sufficient petroleum supplies for domestic use. Trading firms have increased fuel imports and other refineries have ramped up production, it said. Vietnam imported 803,000 m3 of petroleum products in the first half of February, a significant jump from an average monthly amount of 500,000 m3, government data showed.
The planned auction of the RON92 gasoline will take place later this month, at a starting price of 14,058 dong per liter, several state newspapers reported, citing the industry ministry.
As it was reported before, Hyosung Vina Chemicals Co Ltd is in plans to restart its No. 2 polypropylene (PP) line in Southern Vietnam. This PP line with an annual capacity of 300,000 mtt year was taken offline in mid-December 2021 due to propylene supply disruption. The No. 2 line shall be able to resume production once the upstream propane dehydrogenation (PDH) unit restarts. The 600,000 tons/year PDH plant remain shut at the time of this report.
As MRC wrote previoulsy, Hyosung Vina Chemicals Co Ltd starte up its new No. 2 PP plant in Southern Vietnam in August 2021. Besides, a new PDH unit was also scheduled for a start-up at the same site that month.