Singapore refinery blast won't affect local prices

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VietNam News English - 36 month(s) ago 4 readings

The Shell refinery explosion in Singapore will not affect domestic oil supply according to key domestic petroleum importers and distributors.

The Ministry of Finance also said the domestic market remained stable and that no impact had been felt from the Shell explosion.

Shell had to close their Singapore refinery for examination after an explosion several days ago and it remains unclear how long it will take to recover production, 90 per cent of which is for export.

Vinapco director Tran Huu Phuc said the company's plan would remain unaffected by the explosion as it imported petrol from a number of sources in Singapore.

Phuc said Vinapco had previously imported jet fuel from Shell, but this year they were not supplying the company.

Vinapco currently imports roughly 100,000cu.m of jet fuel each month mainly from suppliers in Hong Kong, Taiwan, mainland China and South Korea, with Singapore only contributing a small fraction.

Phuc said jet fuel purchasing and sales would not change because supply would remain steady and the air transport industry would not be affected.

Military Petroleum Corporation general director Vuong Dinh Dung also affirmed that his corporation did not import petrol from Singapore, stating the Shell explosion would not affect the corporation's import strategy.

Dung added that most Vietnamese enterprises didn't purchase products from Shell in large quantities, because the quality of Shell was much higher than Vietnamese standards.

The Military Petroleum Corporation currently imports petrol from Russia, South Korea, Taiwan, Singapore and mainland China, totally about 40,000cu.m per month.

Meanwhile Vuong Thai Dung, deputy-general director of Viet Nam Petroleum Import-Export Corporation (Petrolimex), which holds roughly 60 per cent of domestic petroleum distribution, said since Shell was the biggest refinery in Singapore, the explosion would have some impact on the regional petroleum market.

The refinery has halted operations and it is unclear how much production will be affected, Dung said.

Dung said Petrolimex would continue to meet domestic demand and that if Petrolimex did not purchase from Shell, the company would import from others to provide enough petrol to the market, he said.

Binh Son Petrochemical Corporation general director Nguyen Hoai Giang said his company - which runs the country's only oil refinery at Dung Quat, said their refinery met 30 per cent of total domestic petroleum demand which could stabilise domestic supply.

Giang said Dung Quat had resumed operations after the maintenance period and was running at full capacity.

Dung Quat provides 3 million tonnes of diesel, 2.5 million tonnes of A92 and A95 petrol and 300,000 tonnes of jet fuel each year. — VNS

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