Dung Quat Refinery Runs Steadily at 124-125% Capacity, Securing Fuel Supply During Tet

Amid forecasts of surging fuel demand during Lunar New Year (Tet) - the Year of the Fire Horse 2026 and the regulator’s strict requirement to prevent any localized shortages, Binh Son Refining and Petrochemical Joint Stock Company (BSR) has implemented an assertive operating plan: maintaining safe, efficient and continuous operations at the Dung Quat Refinery at 124-125% of “equivalent capacity”, with 24/7 staffing and uninterrupted crude intake and product dispatch by both sea and road. Beyond a business decision, the plan underscores BSR’s role in supporting domestic market stability and strengthening national energy security.

Preventing Localized Shortages: A Market Challenge and an Energy-Security Imperative

Tet is traditionally a peak season for fuel consumption: travel intensifies, freight volumes rise, and production and services accelerate to meet year-end and holiday demand. At the same time, consumer and commercial stockpiling can trigger sharp, regional demand spikes. In this context, the domestic market authority under the Ministry of Industry and Trade issued guidance to petroleum wholesalers and distributors to mobilize resources, develop suitable supply plans, keep distribution systems running continuously, and most importantly - avoid any localized shortages.

For BSR, the “Tet market order” is not merely about ensuring sufficient supply, but also about stabilizing consumption psychology and maintaining the rhythm of the national fuel logistics chain. When supply remains stable, price volatility and distribution disruptions are less likely, reducing the risk of “breakpoints” in high-demand areas. That is why BSR emphasizes continuous, safe and stable production early in 2026, with proactive operating scenarios aligned to actual plant conditions.

At a deeper level, the Tet fuel story is directly tied to energy security. Dung Quat is positioned as a major domestic supply source. According to information published by BSR, the refinery is designed to process 6.5 million tonnes of crude oil per year and is described as meeting around 30% of Vietnam’s energy demand, reinforcing its strategic importance to the national energy system.

124-125% “Equivalent Capacity”: A Test of Technology, People and Operating Discipline

The defining feature of BSR’s Tet plan is the target operating level of 124-125% equivalent capacity. Plant leadership notes that this threshold reflects the stability of the process chain, the strength of operational management, and the experience of engineers and operators in handling technical contingencies.

However, “high throughput” cannot stand alone; it must be accompanied by safety, security and maintenance integrity. BSR arranges full staffing under shift-based schedules throughout the holiday. Operations, technical, maintenance, HSE and security teams maintain 24/7 coverage, ready to respond rapidly to any arising situation. Equipment checks and preventive maintenance are carried out rigorously to detect early warning signs and reduce incident risk during high-load operations.

A Supply Chain That Runs Through Tet: Continuous Crude Intake and Product Dispatch by Sea and Road

If capacity is the “output,” crude oil and blendstocks are the “input” that determine operational continuity. During Tet, BSR plans to receive five cargoes of crude and feedstocks - covering domestic crude, imported crude, and a feedstock/blending component shipment. Taking advantage of favorable weather windows, the company aims to ensure safe, on-schedule receipt of inputs so that the refinery maintains stable operations without interruption.

On the outbound side, BSR continues normal product deliveries via both maritime and road transport, focusing on essential fuels serving travel, production and daily needs, as well as supporting national defense and security requirements. BSR stresses flexible and timely dispatch to prevent supply “lag” at sensitive moments in the market.

Infrastructure for intake and dispatch is a key factor behind the refinery’s ability to run through Tet. BSR information describes a pipeline system from the refinery to storage tanks of around 7 km (12 pipeline routes), transporting multiple products including gasoline (RON 92/95), Jet A1, diesel, fuel oil, propylene, LPG and others. The pipeline system from storage tanks to the marine export terminal is about 3 km (15 pipeline routes), supporting seaborne product exports and related auxiliary lines.

BSR also presents a diverse product slate, including LPG, propylene, gasoline (RON 92/A95), E5/E10 gasoline blends, kerosene, aviation fuel (Jet A1/JetA1K), diesel (including DO L62), fuel oil, polypropylene resin pellets and sulfur - illustrating Dung Quat’s broad contribution to Vietnam’s fuel and petrochemical supply chain.

When Peak Demand Meets Operational Capability

Operating Dung Quat at 124-125% of equivalent capacity during Tet is not simply a production increase - it is a comprehensive stress test of process stability, safety and security discipline, maintenance resilience, and, critically, the ability to synchronize inbound crude/feedstock logistics with outbound product distribution at peak demand. From a planned output of 1.34 million tonnes in early 2026 to the receipt of five crude/feedstock cargoes during the holiday and uninterrupted deliveries by sea and road, BSR demonstrates a proactive approach: pushing throughput with control, while maintaining uncompromised safety.

In the broader energy-security picture, a refinery designed for 6.5 million tonnes per year and described as supplying around 30% of Vietnam’s energy demand is truly strategic when it can sustain stable operations precisely when the market is most sensitive. Tet - defined by heightened demand, compressed timelines and consumer anxiety is the moment when that capability becomes most visible and most valuable.