Dung Quat refinery faces year-end surplus

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PetroVietnam, the nation's state-owned oil and gas group, has said that its Dung Quat refinery will face a surplus of around 157,200 cubic meters this year even if local fuel traders try their best to purchase its products.

Petrolimex, a subsidiary of PetroVietnam that owns more than a 50 percent share of the domestic fuel market, plans to buy 273,100 cubic meters this month and at least another 407,300 cubic meters in the next two months, VnExpress reported Monday.

Other traders, including PV Oil, Petec and the jet fuel firm Vinapco, also announced plans to purchase Dung Quat's products.

PetroVietnam said that, by the end of December, fuel companies will not be able to use up all of their inventory.

On October 4, the group announced that Dung Quat, Vietnam's first oil refinery, had 750,000 tons of oil and gasoline products in stock and not enough space to store them.

The plant has been running at full capacity, or 30 percent higher than the plan for this year.

The Ministry of Industry and Trade has ordered PetroVietnam to balance supply and demand in the domestic market next year.

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