(EnergyAsia, October 28 2010, Thursday) — Operating at full capacity, Vietnam’s only oil refinery is grappling with the challenge of limited space to store its growing stockpiles of gasoline and diesel.

Managers at the 140,000 b/d Dung Quat refinery have failed to anticipate the increased import volumes ordered by end users, leading to a fuel supply glut in Central Vietnam.

PetroVietnam’s trading subsidiary, Petrolimex, could only lift 30% of its fuel requirements from Dung Quat after having committed to secure 70% of its requirements through imports. Petrolimex has been unable to cancel its import deals.

The US$3 billion Dung Quat refinery has been operating at capacity, or 30% higher than needed by the domestic market for 2010. It was designed to supply about a third of the country’s fuel demand.