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.