What's the future for the Vietnam petroleum market after 2018?

What's the future for the Vietnam petroleum market after 2018?

The Nghi Son Refinery & Petrochemicals Complex with capacity of 10 million
tons per annum will open in 2018, changing the supply-demand situation of
Vietnam's petroleum market.

percent of the domestic demand (it provides 2.746 million tons of petrol and
3.068 million tons of DO).

The Nghi Son Complex has designed capacity of 10 million tons per annum, and
would provide 8.75 million tons of products of different kinds, satisfying
40 percent of domestic demand. (2.307 million tons of petrol and 3.674
million tons of DO).

Other condensate plants such as PVOil Phu My, Saigon Petro, Nam Viet Oi and
Dong Phuong have the designed capacity of 690,000 tons of petrol per annum.

With the predicted economic growth in the next five years, the total demand
for petroleum products in 2018-2022 is expected to reach 6.5 million tons of
petrol and 8.5 million tons of DO.

Meanwhile, Dung Quat and Nghi Son can provide 6 million tons of petrol a
year and 7 million tons of DO, satisfying 92 percent and 82 percent,
respectively, of domestic demand.

This means that Vietnam would still lack 0.8 million tons of petrol and 1.8
million tons of DO a year, which would be fed by imports from regional
countries such as Singapore, Malaysia, Thailand, SK and China.

GDC said Vietnam imported 1.12 million tons of petroleum products of
different kinds in May 2017 alone, worth $551 million, an increase of 6.9
percent in quantity and 1.5 percent in value compared with the month before.


As such, the total import turnover of petroleum products in the first five
months of the year reached 5.1 million tons, valued at $2.7 billion, a 4.6
percent decrease in volume, and 30.8 percent increase in value in comparison
with the same period last year.

The imports in the first five months of the year mostly came from Singapore
(2.12 million, worth $1.05 billion, down by 0.6 percent in quantity, but up
by 34.8 percent in value), South Korea (1.2 million tons, $728 million, up
by 74.6 percent in volume and 111.8 percent in value) and Malaysia (1
million tons, $465 million, down by 33 percent in volume and 14.9 percent in
value)

To compete with petroleum products from Nghi Son Complex and imports, the
Binh Son Refining & Petrochemical Co Ltd (BSR) needs to build up a
reasonable business strategy. Not only targeting the domestic market, BSR is
considering exporting products to regional countries including Laos,
Cambodia and Indonesia.

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Link to Original Article:
http://english.vietnamnet.vn/fms/business/181565/what-s-the-future-for-the-v
ietnam-petroleum-market-after-2018-.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com