The crude shipment was arranged by Nghi Son Petroleum Products Distribution Branch (PVNDB), a subsidiary of the Vietnam National Industry - Energy Group (Petrovietnam), to help maintain stable operations at the refinery.
Diversifying crude oil supply sources is considered crucial for Nghi Son Refinery and Petrochemical LLC (NSRP) in ensuring stable feedstock supplies and safeguarding domestic fuel supply, particularly as traditional crude imports from Kuwait have been affected by tensions in the Middle East.
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The fuel storage tank area of the Nghi Son Refinery and Petrochemical Plant is located in the Nghi Son Economic Zone in Nghi Son ward, Thanh Hoa province. |
While Kuwaiti crude remains the refinery’s primary feedstock under its original design, NSRP has previously successfully processed its first batch of Das Blend crude oil as part of efforts to safely and efficiently handle alternative feedstock sources.
The refinery said the move forms part of its strategy to process an additional 10–12 million barrels of new crude oil annually alongside Kuwaiti crude or equivalent medium-grade oils, especially during specific operational periods such as catalyst replacement at the residue hydrodesulfurization (RHDS) unit.
Implementing Petrovietnam’s international trading strategy, PVNDB successfully arranged its first crude oil shipment for NSRP as the refinery seeks to diversify supply sources. The move contributes to ensuring national energy security while marking PVNDB’s expansion from petroleum distribution into deeper participation in the crude oil supply chain for domestic refineries.
Leveraging Petrovietnam’s reputation and advantages in international transactions, PVNDB coordinated closely with NSRP to review demand, identify suitable supply sources, assess commercial options and negotiate with foreign partners to complete the transaction on schedule while ensuring compliance and risk management requirements.
In the coming period, PVNDB plans to continue importing crude oil suitable for NSRP and other domestic refineries, while strengthening governance standards, workforce development, international cooperation and supply diversification to enhance adaptability and risk management amid global energy market fluctuations.
Under its 2026 production plan announced earlier this year, NSRP aims to import nearly 12.5 million tons of crude oil and supply around 9 million tons of petroleum products to the domestic market.
Established in 2008, NSRP is a joint venture backed by Kuwait Petroleum Europe B.V. (KPE), Japan’s Idemitsu Kosan Co. Ltd. (IKC), Petrovietnam and Mitsui Chemicals Inc. (MCI), with total investment exceeding 9 billion USD.
Source: VNA