Prime Minister Pham Minh Chinh has urged Nghi Son Refinery and Petrochemical LLC (NSRP) to broaden its sources of crude oil supply and avoid dependence on a sole provider, emphasizing the importance of maintaining consistent inputs to safeguard Vietnam's energy security in a volatile global market.
During his official visit to the northern-central province of Thanh Hoa, the Prime Minister emphasized the importance of engaging with the leadership of the refinery.
He stated that expanding the sources of oil supply is not just an economic issue, but also a question of sovereignty, security, and humanitarian considerations.
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NSRP General Director Kazutaka Yamato informed the government leader that the refinery has taken proactive measures to broaden its sources of crude oil in light of global energy security concerns.
He further stated that the facility has ensured an ample supply of oil for continued operations, opting to briefly halt petrochemical production in favor of prioritizing fuel output. This decision has contributed to stabilizing approximately 40 percent of Vietnam's overall petroleum supply. He conveyed gratitude for the Government's initiatives in bolstering crude oil supply for the refinery.
Additionally, he suggested providing additional support to secure sufficient financial resources for importing crude oil, thus preserving a steady fuel supply to the local market. Yamato proposed implementing tax reductions or exemptions for input materials as a strategy to alleviate the financial strains on the facility. After receiving updates from investors from Viet Nam, Japan, and Kuwait regarding the supply of crude oil and the financial situation, Prime Minister Chinh praised the refinery for its proactive measures in ensuring a stable input source and continuous operation amidst various obstacles.
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He observed that, in the past few days, the Government and the Prime Minister have engaged in discussions, phone conversations, and written exchanges with various foreign leaders in order to secure energy stability for Vietnam, particularly in terms of crude oil supply for NSRP.
In light of this, he emphasized the pressing need for the refinery to diversify its sources of supply and lessen its reliance on specific sources. The Prime Minister confirmed that the Government and relevant ministries will remain engaged in collaborative efforts with international partners to enhance the availability of crude oil for domestic production.
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He urged the refinery, specifically its investors and financial institutions, to reorganize supply chains, financial resources, and product strategies in order to enhance effectiveness and sustainability. He emphasized the importance of coordinated efforts based on the principle of aligning interests and sharing risks, requiring collaboration among all parties to address challenges and enhance national energy security.
Earlier on the same day, Prime Minister Chinh and his accompanying group conducted an inspection of a potential location for a crude oil storage facility with a capacity of one million tonnes, spanning an area of 60 hectares in Hai Binh ward, situated near the NSRP. He tasked the provincial authorities with promptly collaborating with impacted households to finalize site clearance and assist in project execution.
The Ministry of Industry and Trade has been assigned the responsibility of overseeing the advancement of the project by the Viet Nam National Industry - Energy Group under critical conditions, in addition to exploring strategies for the establishment of gas storage capabilities in the Nghi Son region.