08:50 | 08/08/2017 Industry
Vietnam's prime minister has approved a plan for the country's total crude oil and oil product stocks to rise to at least 90 days' worth of net imports by 2020.
|Vietnam has passed a plan to store crude oil and oil products by 2020 - Photo by VnExpress|
The southeast Asian country is joining developing nations such as China and India by establishing an oil buffer that will enhance energy security as imports jump and domestic production dwindles.
The 90-day net import level is a standard set by the International Energy Agency for its OECD members.
Vietnamese refineries will be required to maintain crude stockpiles equivalent to 15 days of their processing capacity and 10 days of product output, a government statement said on Friday. This would be equivalent to 30-35 days of Vietnam's net imports, it said.
The government said it planned to keep commercial oil stockpiles stable at 35 days of net imports while crude and oil products reserves at import terminals and those held by trading companies are expected to reach 20 days of the country's net imports by 2025.
The statement did not provide details on where the storage facilities will be located.
Vietnam imported 280,492 tons of crude oil in the first half of this year, up 1.6 percent on-year, according to government data.