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VN needs $10b for oil reserve
Viet Nam needs investment capital of nearly US$10 billion from now to 2025 to build up reserve systems for crude oil and petroleum products under a recent Prime Minister’s decision.
Decision No 1139/QD-TTg dated July 31, which sets out a master plan for crude oil and petrol products reserves, estimates necessary capital at $2.3 billion from now to 2015 and $7.19 billion between 2016-25.
The plan includes reserves for trade, production and national consumption with major objectives to stabilise the prices of petroleum products in the local market, ensure supply of crude oil for domestic refineries, guarantee energy security, and match the development trend of the local oil market, the decision stated.
The reserves will also help guard against adverse impacts on the country’s economy in case there is a shortage in crude oil supply and large price volatility in the global market, said an official from the National Oil and Gas Group, who wanted to remain anonymous.
In particular, trade reserves from 2009-25 ensure demand is met within 30 days (equivalent to 2.4 million tonnes). Crude oil reserves would be enough to maintain production within 10-15 days. The national reserves (both crude oil and petrol products) guarantee supplying the local market within one month, he said.
The State encourages all enterprises to reserve crude oil and petrol products in line with these rules.
The country’s first refinery Dung Quat was designed to be capable of processing 6.5 million tonnes of crude oil a year, or 100,000-145,000 barrels per day. Once fully operational, the refinery will meet 30 per cent of domestic demand. At present, Viet Nam imports 13 million tonnes of oil per year.
vietnamnews
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