NSRP commits to ensuring the supply sources of petroleum products in domestic market

Recently, the fuel supply from abroad to Vietnam has faced many difficulties that have possibly led to shortage of petroleum products at some petrol agents and retail gas stations.

Under the circumstances, Nghi Son Refinery and Petrochemical LLC (NSRP) has received the Letter No. 6327/BCT-TTTN on 13^th October 2022 from the Ministry of Industry and Trade (MoIT) requesting NSRP to maintain stable production activities and maximize production to ensure petroleum supply to the domestic market. The Ministry also requested NSRP to take adequate measures to facilitate petroleum products delivery to enterprises that have ordered goods under the signed contracts.

In the response letter to MoIT, NSRP has confirmed the Company’s plan to operate the Refinery at average 100% utilization rate in Q4 2022 to ascertain the continuously stable supply of petroleum products to the local market. NSRP will also deliver the quantity committed to the current Off-taker in Q4/2022, based on the Fuel Products Offtake Agreement (FPOA) prevailing between the two Parties. The committed quantity amounts to about 2.4 – 2.5 million m3 of fuel products to the Off-taker in the last quarter of this year, which we believe well enough to contribute to the supply stability in the Vietnamese fuel market.

Regarding the request to speed up the products delivery, NSRP has been working closely with the Off-taker to maximize the quantity to be delivered in Q4/2022 under the FPOA although the delivery progress depends greatly on the weather conditions as well as vessel arrangements by the Off-taker and their key traders.

NSRP has committed to playing its key role in ensuring the national energy security by providing approximately 40% of the national petroleum fuel demand and will continuously contribute to the sustainable socio-economic growth of Vietnam.

About NSRP

NSRP is a joint venture company established in April 2008, sponsored by 4 Sponsors including Vietnam Oil & Gas Group (PVN) from Vietnam, Kuwait Petroleum Europe (KPE) from Kuwait, Idemitsu Kosan Co.,Ltd (IKC) and Mitsui Chemicals Inc (MCI) from Japan. With a total investment of over US$ 9 billion and a processing capacity of 200,000 barrels of Kuwait crude oil per day (equivalent to 10 million tons per year), the Refinery is one of Vietnam’s key national projects and one of the most sophisticated refineries operating in Asia today.