The Vietnam National Oil and Gas Group (PetroVietnam) and the nationalflag carrier, Vietnam Airlines, are in the process of finalising a fuelsupply contract.
The deal will take effect at theend of the year when PetroVietnam's Dung Quat Refinery Plant, where theaviation fuel is produced, earns its ISO standard certification.
For now, both parties are proceeding with the delivery of the first batch of aviation fuel.
The domestic air transport market consumes more than 700,000 tonnes offuel a year worth around 45 million USD on average, according toVietnam Airlines General Director Pham Ngoc Minh.
Atfull capacity, the Dung Quat Refinery can supply more than 300,000tonnes of Jet A1 aviation fuel, or slightly more than 40 percent of themarket demand.
Meanwhile, the subsidiaries of bothgroups, PetroVietnam's PV Oil and Vietnam Airlines's Vietnam Air PetrolCompany (Vinapco), finalised a supply contract in June, according to PVOil's managing director Le Xuan Trinh.
Under the contract, Dung Quat Refinery will supply 15,000 tonnes of Jet A1 petrol every month to Vinapco.
PV Oil and Binh Son Refinery (BSR), another subsidiary ofPetroVietnam, exported 4,500 tonnes of Jet A1 fuel to British PetroleumSingapore in mid-August. It was the first time that locally producedaviation fuel was sold on the international market.
PV Oil and BSR say they have targeted Royal Dutch Shell as their next potential customers.
Before Jet A1's arrival in the market, it went through a strictquality check in May by an alliance of international aviation fuelsuppliers including Shell, Chevron, ExxonMobil, Total, BP and Satoil.
The product also earned recognition from the AmericanSociety for Testing and Materials (ASTM) and British Defence Standard(DEFSTAN).
BSR plans to turn out more than 120,000tonnes of Jet A1 from now until the end of the year and around 300,000tonnes in 2011.
"The export of the first batch is aninternational recognition of made-in-Vietnam aviation fuel," saidNguyen Hoai Giang, managing director of BSR, adding that he hoped Jet A1would be able to replace imported aviation fuel in the near future./.
The deal will take effect at theend of the year when PetroVietnam's Dung Quat Refinery Plant, where theaviation fuel is produced, earns its ISO standard certification.
For now, both parties are proceeding with the delivery of the first batch of aviation fuel.
The domestic air transport market consumes more than 700,000 tonnes offuel a year worth around 45 million USD on average, according toVietnam Airlines General Director Pham Ngoc Minh.
Atfull capacity, the Dung Quat Refinery can supply more than 300,000tonnes of Jet A1 aviation fuel, or slightly more than 40 percent of themarket demand.
Meanwhile, the subsidiaries of bothgroups, PetroVietnam's PV Oil and Vietnam Airlines's Vietnam Air PetrolCompany (Vinapco), finalised a supply contract in June, according to PVOil's managing director Le Xuan Trinh.
Under the contract, Dung Quat Refinery will supply 15,000 tonnes of Jet A1 petrol every month to Vinapco.
PV Oil and Binh Son Refinery (BSR), another subsidiary ofPetroVietnam, exported 4,500 tonnes of Jet A1 fuel to British PetroleumSingapore in mid-August. It was the first time that locally producedaviation fuel was sold on the international market.
PV Oil and BSR say they have targeted Royal Dutch Shell as their next potential customers.
Before Jet A1's arrival in the market, it went through a strictquality check in May by an alliance of international aviation fuelsuppliers including Shell, Chevron, ExxonMobil, Total, BP and Satoil.
The product also earned recognition from the AmericanSociety for Testing and Materials (ASTM) and British Defence Standard(DEFSTAN).
BSR plans to turn out more than 120,000tonnes of Jet A1 from now until the end of the year and around 300,000tonnes in 2011.
"The export of the first batch is aninternational recognition of made-in-Vietnam aviation fuel," saidNguyen Hoai Giang, managing director of BSR, adding that he hoped Jet A1would be able to replace imported aviation fuel in the near future./.
