Vietnam approves $31.7 bln plan to expand fuel storage capacity by 2030

Viet · Jul 19, 2023

FILE PHOTO-A security guard walks past a petrol station at Dung Quat oil refinery, in Vietnam's central Quang Ngai province February 22, 2009. REUTERS/Kham/File Photo

HANOI, July 19 (Reuters) - Vietnam has approved a plan to expand its national fuel storage capacity by 2030, with investment of up to 750 trillion dong ($31.7 billion).

The investment would raise the country's crude oil and refined fuel storage capacity to 75 to 80 days of net imports, according to the plan signed by Deputy Prime Minister Tran Hong Ha on Tuesday and reviewed by Reuters.

The country's current fuel storage capacity stands at 65 days of net imports, state media cited the Minister of Industry and Trade as saying in March.

The Southeast Asian country, a regional manufacturing hub, has at times faced fuel supply crunches because of tight global supplies or malfunctions at its local oil refineries.

Most of the funds for the plan would be raised from businesses and from the state budget, the plan showed.

Under the plan, the country will also develop liquefied natural gas (LNG) terminals and associated LNG storage sites with an annual capacity of 20 million tonnes by 2030.

Vietnam received its first shipment of LNG this month, a milestone for the energy-hungry country that seeks to have 13 power plants fed by gas imported as LNG by 2030.

However, various hurdles may mean it could take years for imported gas to ease the country's long-running power shortages.

The storage plan also aims to expand the capacity of the national fuel reserves by 500,000 cubic metres, apart from boosting commercial capacity.