Vietnam's Nghi Son Refinery and Petrochemical (NSRP) is offering rare cargoes of diesel for export in November, likely because of a supply glut in the country.
NSRP is selling 35,000 kl (220,000 bl) of 50ppm sulphur diesel oil and 30,000 kl of 10ppm sulphur diesel oil for loading in late November, according to a notice on the refiner's website. Bids for these cargoes are to be submitted by 2 November.
NSRP is a joint venture between state-owned PetroVietnam, Kuwait's state-owned KPC and Japanese firms Idemitsu and Mitsui Chemicals. This is the first time since 2021 that the refiner has offered diesel cargoes for export, Argus' tender records show. It last offered diesel cargoes for export in December 2021, when domestic demand plunged during the Covid-19 pandemic.
The latest export offers could have emerged as the country's importers likely bought surplus diesel supplies when the 200,000 b/d Nghi Son refinery was under a planned turnaround from August-October.
The country's gasoil imports surged to an over three-year-high in August at 148,000 b/d, data from oil analytics firm Vortexa show. But traders noted that Vietnam's demand has slowed since, and buying has slowed accordingly especially after NSRP resumed operations at its plant this month.
The refinery is geared to produce 75,000 b/d of gasoil, most of which should be used for domestic demand.
