Military conflicts in the Middle East are creating major shocks to the global energy market, leading to the risk of supply disruptions and significant fluctuations in oil prices. Faced with the challenge of ensuring national energy security, Nghi Son Refinery and Petrochemical Company Limited – one of Vietnam's two largest refineries – has flexibly implemented various solutions to overcome difficulties, maintaining 100% capacity operation to ensure energy security and market stability.
Flexibility when the supply chain is disrupted.
Established in February 2008 in the Nghi Son Economic Zone, Thanh Hoa province, Nghi Son Refinery and Petrochemical Complex, with a total investment of over 9 billion USD, is funded by four major shareholders: Vietnam National Energy and Industry Corporation (25.1%); Kuwait Petroleum Europe BV (KPE) 35.1%; Idemitsu Kosan Corporation of Japan (35.1%); and Mitsui Chemicals Corporation of Japan (4.7%). Since commencing commercial operation at the end of 2018, Nghi Son Refinery and Petrochemical Complex's products have made a significant contribution to energy security and ensured the country's petroleum supply.
According to reports, the Nghi Son Refinery supplies 35-40% of Vietnam's petroleum product needs annually, playing a key role in ensuring a stable domestic supply. However, from the end of March to the end of August 2026, the refinery switched to processing almost entirely crude oil from outside Kuwait due to supply disruptions caused by the Middle East conflict.
Faced with the challenge of supply chain disruptions, Mr. Le Nguyen Quoc Vinh, Director of Nghi Son Refinery and Petrochemical Plant, said that NSRP has proactively implemented a strategy to diversify crude oil sources since the end of 2025 to enhance flexibility and adaptability in operations.
A significant milestone was reached in January 2026 when NSRP successfully processed its first batch of non-Kuwait crude oil, Das Blend, totaling approximately 1 million barrels. This batch arrived at Nghi Son port at the end of December 2025 and was safely received and processed according to the plant's strict operating standards. This success not only affirms NSRP's technical capabilities but also lays an important foundation for diversifying its feedstock sources in the long term.
Based on this foundation, NSRP has gradually expanded its portfolio of crude oil that it can receive and process. To date, the refinery has successfully processed 10 types of crude oil other than Kuwait Export Crude (KEC), thereby significantly increasing its flexibility in input materials. Expanding supply options helps NSRP strengthen its resilience to market fluctuations, minimize the risk of raw material disruptions, and optimize operational and economic efficiency.
To achieve this 125% capacity, NSRP has made efforts over the years, from reviewing and analyzing everything to obtaining approval from the contributing parties.
As can be seen, petroleum products are strategic commodities and play a particularly important role in the functioning of the economy. Therefore, ensuring domestic supply not only has economic significance but also makes a practical contribution to ensuring national energy security.
An NSRP representative shared that, during the period from April to June 2026, when crude oil supply faced difficulties, the refinery significantly reduced, or even almost completely stopped, the production of petrochemical products to prioritize shifting raw materials to the production of refined petroleum products.
Accordingly, the products of the Nghi Son Refinery consist of 85% gasoline and diesel products (of which about 30% are RON 92 and RON 95 gasoline; 60-70% are diesel), and the remaining 15% are petrochemical products (Polypropylene - PP plastic; Benzene; Paraxylene...). Therefore, at certain times when crude oil supply is difficult, the refinery has adjusted its petrochemical production plan to shift to oil refining, helping to increase the supply of gasoline and diesel to the market by about 15-16%.
"This capability stems from the very structure and technological design of the refinery. Thanks to adjustments in the product mix, during that period, we were able to increase petroleum production by approximately 15-17%. This additional production helped compensate for the crude oil shortage, thereby ensuring the refinery's continued supply of refined petroleum products, primarily gasoline and diesel, to the market," the NSRP director further shared.
In order to maintain supply when the global supply chain faced difficulties, at many times both domestic refineries operated above their designed capacity to ensure the supply of petroleum products for production and consumption.
Speaking at the Nghi Son Refinery and Petrochemical Plant, Mr. Le Nguyen Quoc Vinh stated that NSRP has made significant improvements recently thanks to the plant's stable operation.
"To achieve this 125% capacity, NSRP has made efforts over the years, from reviewing and analyzing everything to obtaining approval from the contributing parties. It wasn't 125% immediately, but gradually increased from 110% in stages, involving discussions with lenders, detailed technical assessments, and consultations... to get approval to operate at 125% capacity, as it also involves insurance and other relevant parties. NSRP has also reported to the state management agency, the Ministry of Industry and Trade ," an NSRP representative stated.
Maintaining the pillar of energy security
In the context of a volatile and unpredictable global energy market, maintaining stability in the domestic petroleum market depends not only on the management measures of regulatory agencies but also requires the coordination and cooperation of businesses.
Sharing this information, Mr. Kazutaka Yamato, General Director of Nghi Son Refinery and Petrochemical Company Limited (NSRP), further clarified the context of the volatile global energy shift since the beginning of the year, especially the period of tension in the Middle East which caused crude oil prices to rise sharply and disrupted import supplies from Kuwait. However, with the support of the Vietnamese Government, Petrovietnam , and other investors, Nghi Son Refinery and Petrochemical Company Limited and the Nghi Son Refinery and Petrochemical Plant have maintained safe, stable, and continuous operation.
"In August 2026, the company achieved the milestone of 30 million safe working hours, with no lost-times. This is a safety achievement, demonstrating a strong commitment to safety and the plant's continued safe, stable, and continuous operation. More importantly, after stabilizing the crude oil supply in the first six months of 2026, the plant's operations continue to be stable and maintain a relatively high operating capacity," said General Director Kazutaka Yamato.
To achieve those results, Mr. Kazutaka Yamato emphasized the three "P"s that contributed to NSRP's success. The first is "Preparation" - demonstrated by the company's proactive and flexible approach to research, diversification of crude oil sources, and increased fuel flexibility.
Next is "People," meaning that for a plant as unique as Nghi Son, staff, especially the operating team, must work 24/7, with no time off, in shifts. Another crucial element is "Partnership," which comes from the Vietnamese government, the leadership of Thanh Hoa province, various ministries and agencies, and the investors in the joint venture.
During periods of market volatility, our priority is maintaining stable operations and maximizing output. NSRP works closely with its distributors in planning, allocation, warehousing, logistics, and inventory management to ensure a smooth supply to the domestic market while fulfilling all trade commitments.
NSRP representatives affirmed that they will continue to combine long-term supply contracts with spot market oil purchasing opportunities, while expanding the program for evaluating and testing new crude oil grades. This strategy will not only contribute to strengthening energy security and mitigating geopolitical risks, but also enhance the competitiveness, flexibility, and sustainable operation of the refinery in the long term.
In the fourth quarter, NSRP is expected to supply an additional 2.69 million tons of products, bringing the total annual output to over 9.2 million tons. This result helps NSRP continue to meet approximately 35-40% of domestic fuel demand, thereby affirming its role as one of the important pillars ensuring national energy security.
"During periods of market volatility, our priority is maintaining stable operations and maximizing production. NSRP works closely with its distributors in planning allocation, warehousing, logistics, and inventory management to ensure a smooth supply for the domestic market, while fulfilling all trade commitments. For example, today our inventory of petroleum products is around 60-70%, which is enough 'room' to supply the market for the next 10-20 days. That's very good, and the refinery is striving to do its best," Mr. Le Nguyen Quoc Vinh shared.
Source: https://www.vietnamplus.vn/nsrp-chu-dong-truc-bien-dong-chuoi-cung-ung-giu-vung-mach-nguon-xang-dau-post1139809.vnp
