Domestic gas market has mixed in recent days due to supply shortage after Dung Quat oil refinery suddenly suspended its operation on August 8th, 2012 for repair.

Gas retailers said that distributors also cut gas supplies to them, leading negative reaction from consumers.

As reported by Tuoi Tre Newspaper on July 27th, domestic market showed signs gas supply shortage from late July since Dung Quat oil refinery stoppaged nearly two months for maintenance. At that time, gas price in the world market traded at high levels, some distributors began hoarding in order to push up retail prices in domestic market. Dung Quat oil refinery, then, resumed on July 8th, but it closed again after a month, caused gas shortage one more time in domestic market.

Spokesman from Vietnam Gas Association told that Dung Quat oil refinery shutdowns suddenly for problems repair, so the shortage of gas is unavoidable, especially at retailers who only purchase gas production from Dung Quat, and without imports.

According to data from Dung Quat oil refinery, gas supplies from the plant accounts for nearly 30% of the domestic market (about 400,000 tons per year). The shortages of gas etimates about 9,000 tons since plant suspended from August 8th to 16th.

Vietnam has nealy 30 traders who are eligible to import gas, however, only 20 companies regularly import and supply for the domestic market. But small gas companies (accounting for 70%) can not actively reserve as prescribed due to lack of capital and warehousing.

An official of Sale Department from PVgas said company is seeking the supplies from other suppliers such as China, Japan and Korea to compensate for the shortage from Dung Quat oil refinery, however, foreign suppliers known well about situation and push price up around USD70-80 a tonne for immidiate contracts.

Cangdau.net