Vietnam’s trouble-plagued Nghi Son refinery is set to restart operations after a weeks-long closure for maintenance work, Reuters is reporting. The refinery is looking down the barrel of a US$1 billion loss this year on the back of volatile prices, interest payments, and production delays due to maintenance.
Why it matters: The Nghi Son refinery supplies around 35 percent of Vietnam’s petrol supply. When it’s out of commission supplies are replaced by imports which are purchased at world market prices–this can be a much more expensive option. This can have broad-reaching economic implications.
Also worth noting: Earlier this year when petrol shortages were widespread as a result of costs exceeding the regulated retail price, the Nghi Son refinery was directed to increase production to 110 percent.