Trade ministry: E5 bio-fuel meets local demand
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Trade ministry: E5 bio-fuel meets local demand

Economy, Vietnam, Vietnam Finance News
HCM City petrol station (Photo: VNA)

Hanoi (VNA) – The supply of E5
bio-fuel is enough to meet the local demand and can fully replace RON 92 petrol
beginning next year, the Ministry of Industry and Trade (MoIT) said.

The
ministry said it had established a team to work with E5 bio-fuel producers and
traders, and Binh Son Refinery to accelerate progress, as well as prepare
infrastructure for the use of E5 bio-fuel nationwide. This followed the latest
decision passed by Deputy Prime Minister Trinh Dinh Dung concerning the
bio-fuel development project and the roadmap for shifting to bio-fuel mixed
with fossil fuels.

Statistics
from the ministry showed that the total petroleum consumption amount in the
country last year was around 7.4 million cu.m. Of this, the E5 bio-fuel
consumption was 590,000cu.m, accounting for 8 percent of the total consumption,
while that of RON 92 petrol was 92 percent, equivalent to 6.81 million cu.m.

The
ministry said that if the country halted the use of RON 92 petrol from the
beginning of next year, the total E5 bio-fuel consumption would be more than
5.3 million cu.m.

The
supply of bio-fuel ethanol for E5 petrol, which is a mix of A92 petrol (95 percent)
and bio-fuel Ethanol (5 percent), has been mainly provided by two biological
plants of Tung Lam Joint Stock Company, having a total yearly capacity of
200,000 cu.m to produce 3.9 cu.m of E5 a year.

In
2016, the company sold around 2,000 cu.m of ethanol to the market.

There
are two ethanol plants in southern Dung Quat and Binh Phuoc provinces with a
capacity of 100,000 cu.m a year. However, the two plants had temporarily halted
their operations owing to lack of demand. They have been asked to restart
operations by the end of this year to cater to the nationwide demand for E5
bio-fuel, once it replaces RON 92 petrol.

The
ministry added that five out of the 26 petrol traders have their own E5
bio-fuel mixing system, including Vietnam National Petroleum Group
(Petrolimex), PetroVietnam Oil Corporation (PV Oil), Ho Chi Minh City Oil and
Gas Company (Saigon Petro), Military Petroleum Corporation and Nam Song Hau
Trading and Investing Petroleum Joint Stock Company.

Petrolimex
has five E5 mixing stations in Hanoi, Hai Phong, Da Nang, HCM City and Can Tho
that uses in-line mixing technology with a total capacity of around 1.05
million cu.m. Petrolimex has planned to increase its number of current mixing
stations, as well as invest in those in Hanoi, Phu Tho, Quang Ninh, Ha Nam, Nghe
An, Binh Dinh, Khanh Hoa and Ba Ria-Vung Tau. The total mixing capacity after
the investment would reach 3 million cu.m to 3.4 million cu.m a year.

Pv
Oil has 12 mixing stations in nine cities and provinces with a total yearly
capacity of 1.06 million cu.m. In addition to these, it has been investing in
five mixing stations in Quang Ninh, Thai Binh, Ha Tinh provinces and Can Tho
city. It is also upgrading its current stations to bring the total capacity to
1.67 million cu.m a year.

The
three remaining companies have total mixing capacity of more than 800,000 cu.m
a year.

The
PETIMEX and Thanh Le Import-export Corporation, which have E5 bio-fuel mixing
stations with a total capacity of 750,000 cu.m to 800,000 cu.m a year, have not
been brought into operation.

The
total yearly capacity of E5 mixing stations from the seven petroleum traders
could reach 6.2 million cu.m to 6.7 million cu.m to meet with the demand for E5
beginning next year.-VNA

QBCA

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