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Dung Quat Oil Refinery under scrutiny of National Assembly

Deputies of the National Assembly urged the government to evaluate the economic efficiency of Vietnam’s Dung Quat Oil Refinery.

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Deputies of the National Assembly urged the government to evaluate the economic efficiency of Vietnam’s Dung Quat Oil Refinery.

Deputy Nguyen Ngoc Dao raised concerns about Dung Quat Oil Refinery’s future

The appeal was made during a group discussion at the on-going National Assembly session in Hanoi on November 11.

Deputy Nguyen Thi Nguyet Huong said that the Dung Quat Oil Refinery is an economic opportunity for Quang Ngai Province. It has helped the country to limit crude oil export and meet around 30% of the domestic petroleum demand.

Huong also pointed out that, “The refinery construction time was too long (9 years), doubling its total investment capital to over USD3 billion from the initially planned figure. These costs need to be examined.”

Huong also noted that if the huge investment is included in the refinery’s product prices, consumers will have to carry the burden. “If petroleum import prices are lower than those of locally-made products, consumers will prefer the imports of the same quality but lower prices,” Huong elaborated.

The deputy also wondered about the future operations of the refinery when oil source of Vietnam’s easily-exploited oil fields have nearly run dry.

Huong also noted that many people in Dung Quat Industrial Park, who had to give their land up for the refinery’s construction, have not yet received jobs.

Deputy Nguyen Thi Hoa also called on the government to assess the refinery’s economic efficiency. She suggested that the petroleum sector should invest in the refinery, instead of expanding to hotels or other industries.

Regarding human resource issues, Hoa said that hiring foreign experts still account for a large portion of the refinery’s operation costs. This is among causes leading to high costs of the project.

Deputy Nguyen Ngoc Dao said no one can affirm that the refinery project can recall capital or make profits anytime soon, making it a sketchy investment.

Dao highlighted that the country’s petroleum sources will run out in less than 20 years. After that, he asked how Vietnam can operate the refinery.

Dao also urged the government to specify the project’s socio-economic efficiency, saying that the government’s report does not clarify its goals.

Deputy Chu Son Ha suggested that the Dung Quat Oil Refinery project should be sent to the State Audit for accurate evaluation of its investment efficiency to submit to the National Assembly.

Although the government has instructed petroleum traders to buy products of the refinery, Deputy Vu Quang Hai still felt it is needed to examine opinion of a large petroleum company saying that products of Dung Quat are only for domestic consumption, not exports.

Source: dtinews.vn
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