State-run Vietnam Oil and Gas Group (PVN) is requested to ensure sufficient supplies of petroleum products for domestic consumption.

Prime Minister Pham Minh Chinh at the meeting. Source: VGP

Prime Minister Pham Minh Chinh stressed the view during a meeting with PVN on September 11.

Amid growing uncertainties and unprecedented challenges in the global energy market, Chinh called for PVN to prepare plans on yearly and quarterly basis, to stay active against any circumstances.

“The PVN with its key role in ensuring national energy security, the company’s main task is to provide sufficient energy supply for the economy, especially petroleum products,”Chinh said.

PVN is currently the owner of the Dung Quat oil refinery plant and holds a 25% stake in Nghi Son plant – Vietnam’s only two of its kind to date. The combined capacity of the two plants makes up 70-75% of total local consumption.

The prime minister also called for the energy group to change its mindset and promote the development of the energy sector, along with diversification of the supply sources.

On the Dung Quat oil refinery expansion project, estimated at an investment capital of US$1.26 billion and production capacity of 171,000 barrels per day, Chinh expected a decision to be made in September.

At the meeting, PVN General Director Le Manh Hung said the production capacity of the two plants in the third quarter is 3.9 million cubic meters, or 72% of total demand, and 4.4 million cubic meters in the next quarter, or 80%.

According to Hung, PVN continues to be a key pillar of the economy, contributing to national energy, food, and economic security, at the same time ensuring the country’s territorial sovereignty.

In 2021, PVN paid VND112.5 trillion (US$4.8 billion) to the state budget, surpassing 80% of the year’s plan and up 36% year on year; during the first eight months of 2022, the figure stood at VND90.6 trillion ($3.85 billion), exceeding the year’s target by 40% and up 45% year on year.

During the period, it produced 7.31 million tons of oil, 4.56 million tons of petrol, and 1.2 million tons of fertilizers, generating over VND627 trillion ($26.6 billion) in revenue, up 60% year-on-year, and a pre-tax consolidated profit of VND57.5 trillion ($2.4 billion).

Hung said the PVN is working on its development strategy until 2030, with a vision to 2045, for which the PVN’s operation would be in line with national strategies on the energy sector, sustainable maritime economic development, and socio-economic development.