Vietnam’s Dung Quat to supply products to all importers

State-owned PetroVietnam’s newly-built 6.5 million metric per year (130,000 barrel per day) Dung Quat refinery will start supplying oil products to all of the country’s state-owned oil products importers from July-August, industry sources said. PV Oil has initially inked framework agreements with only Vietnam Air Petrol Co., (Vinapco); Saigon Petro; Dong Thap Petroleum (Petimex); Thanh Le Petroleum (Thalexim); Military Petroleum Co. and Petro Mekong, to start supplying oil products to them this year. The company has been lifting some straight run products since the refinery’s startup in February 2009. But this will be raised to around 15,000 cubic meters (cu m) (94,300 barrels) of fuel oil, 120,000 to 150,000 cu m of 92 RON and 95 RON gasoline and more than 200,000 cu m of 0.25% sulfur gasoil and 0.05% sulfur gasoil for July, a source said earlier. Vietnam’s sole jet importer Vinapco will buy 100,000 mt of jet A-1 from Dung Quat between August and December. They are PETEC, Saigon Petro, Petimex, MPC, Thalexim and Phu Yen Co., or Pygemaco. Meanwhile, term premiums for the oil products from Dung Quat this year were understood to be set at similar levels to import term levels, over a price formula. (July 5, 2009)