Vietnam's MoI plans 35 days’ oil storage

[HenryTo]

Now the Vietnamese is getting into the act of having a petroleum reserve. Note that China is about to start filling its own storage tanks as well - just as the U.S. SPR finishes its 75,000 barrel a day storage plans:
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MoI plans 35 days’ oil storage

VNECONOMY updated: July 11, 2005

The Ministry of Industry (MoI) is drawing up a national plan on oil reserves with an aim to keep oil prices stable as world price fluctuates.

Under the plan, Vietnam will hold both refined and crude oil with a specific storage and maintenance process, some contracted to private companies for managing.

Some types of storage have been discussed, including above-ground and subterranean systems.

Planners have also explored ways of reinforcing already-tapped oil fields for storage.

However, the costs for such depots would be high, construction alone reaching US$100 per square metre. Petrolimex once spent VND800-900bil on a 500-cu.m oil depot in Van Phong Bay, Khanh Hoa Province.

According to Nguyen Van Vy, Deputy Director General of the Institute for Industry Policy and Strategy under MoI, Vietnam currently has some oil storage but it serves commercial purposes only.

According to current regulations, oil and petrol importers must have reserves equal to 15 days’ consumption but MoI is planning to build storage enough for 35 days.

The plan is to be submitted to the Government in September.