Wednesday, July 26, 2006

U.S. and Vietnamese Agencies Work Together For Cleaner Fuels and Vehicles in Vietnam

July 19, 2005

The U.S.–Asia Environmental Partnership (US-AEP), a program of the U.S. Agency for International Development (USAID), Vietnam Standards Center, and Vietnam Register will host a national workshop entitled "Adoption of Euro Standards for Vehicle Emissions and Fuel Quality" on July 19 in Hanoi and July 21 in HCMC. The workshop highlights the important linkages between adverse health effects and air pollution caused by vehicle and motorbike emissions in cities.

During the workshop experts from Vietnam, China, Thailand, and the U.S. will stress the importance of developing a national strategy for cleaner fuel and vehicle emissions, and offer recommendations on ways to improve air quality through tighter fuel standards, new emission control technologies, alternative fuels, and economic policy instruments.

Dr. Ho Tat Thang, Deputy General Director of the Directorate for Standards and Quality (STAMEQ) of the Ministry of Science and Technology, Mr. Nguyen Van Ban, General Director of Vietnam Register of the Ministry of Transport, and Mr. Nathan Sage, Environment Program Manager of USAID/Vietnam will make the opening remarks.

US-AEP has been assisting the Government of Vietnam since 1999 to promote cleaner and healthier cities. In follow-up to the successful phase-out of leaded gas in 2001, STAMEQ, Vietnam Register, and private companies such as Ford Motor and Honda Motorbike have pledged their support for a medium-term fuel quality and vehicle emission strategy with a goal of achieving Euro 4 standards by 2010.

At the workshop, it is expected that Dr. Vu Van Dien, Director of Vietnam Standards Center, will announce new gasoline and diesel quality standards (equivalent to Euro 2). The national workshops in Hanoi and HCMC aim to gain industry-wide consensus from vehicle manufacturers, refineries, and fuel retailers to the new gas and diesel standards.

Mr. Pham Quang Thanh, Deputy Director of the Vehicle Quality Department at Vietnam Register, will describe a proposed project for a new vehicle emission testing center that will allow Vietnam Resister to enforce stricter emission standards for vehicle manufacturers.

Mr. Cao Xuan Vinh, Head of the Environmental Department of Vietnam Register, will describe a plan by Vietnam Register to introduce liquefied petroleum gas (LPG) in Vietnam for the transport sector. In addition, there are currently several pilot projects promoting cleaner fuels for transportation in Vietnam, including the introduction of LPG buses and motorcycles in Danang city.

Sandrine Dixson-Decleve, a Director at the International Fuel Quality Center, will share best international practices on tightening and monitoring fuel quality specifications. Mr. Michael Walsh, a retired expert from the U.S. Environmental Protection Agency, will discuss policy recommendations from a US-AEP-funded Cost and Benefits Analysis for Adoption of Euro Fuels and Vehicles Standards to Reduce Emissions in Vietnam.

Dr. Robert O’Keefe, Vice President of the Health Effects Institute in Boston, USA will address the issue of health effects of air pollution. Several research studies indicate that levels of emissions from vehicles are positively correlated with heart, brain and respiratory problems, as well as cancer, particularly among sensitive populations such as children and the elderly.

Dr. Supat Wangwongwatana, Deputy Director General of the Pollution Control Department, Thailand will point out that between 2,100 to 5,500 premature deaths were attributed to air pollution in Bangkok in one year. Since introduction of cleaner fuels and emissions standards, the air in Bangkok has improved significantly. Experiences from regional countries such as China and Thailand demonstrate the importance of developing a strategy before air pollution becomes a serious problem.

Dr. Fu Lixin from Tsinghua University in China will note that strong governance and a science-based approach are needed for effective management of air pollution. China has developed a national strategy for clean fuels and vehicles, including restrictions on motorcycles and old vehicles, introduction of compressed natural gas (CNG) buses, and enforcement of stringent emissions standards.

Knowing what the fuel standards will be in the future is critical to the petroleum industry. "Vietnam is in the process of building two new refineries, the first of their kind in the country. It is urgent, therefore, that the government tighten fuel quality specifications before the refineries are built in order to avoid the higher costs in the future of upgrading the technology of the refineries to meet stricter quality standards. This is an important lesson learned from the mistakes of many other countries such as Indonesia." Mrs. Phan Quynh Nhu, Clean Cities Coordinator at U.S.-AEP Vietnam.

Mr. Nathan Sage, USAID Vietnam Environment Program Manager stressed that, "Air pollution is a serious problem. About four million people in Vietnam, equivalent to five percent of the population, suffer from allergies and other respiratory illnesses. Moving toward cleaner fuels and vehicles today will save lives tomorrow."

Note to Journalists: Those wishing to learn more about the workshops can call Mr. Nathan Sage, Environment Program Manager at the U.S. Agency for International Development (USAID) office in Hanoi at (4) 935-1222.

http://hanoi.usembassy.gov/index.html

Tuesday, July 11, 2006

Diesel fuels technical review


  1. Màu của nhiên liệu dầu diesel tôi mua gần đây tối hơn, sậm hơn thường thấy. Điều này cónghĩa là nhiên liệu trở nên xấu hơn?
  2. Điều gì là đề phòng đặc biệt cần làm đối với nhiên liệu diesel được lưu trữ trong một thời gian dài?
  3. Dầu nhiên liệu diesel có hàm lượng Lưu huỳnh thấp có đủ độ bôi trơn?
  4. Dầu nhiên liệu diesel có hàm lượng Lưu huỳnh thấp hoặc hàm lượng aromatic thấp là nguyên nhân rò rĩ hệ thống nhiên liệu?
  5. Tôi tình cờ trộn lẫn xăng với dầu diesel. Tôi có thể làm gì?

Saturday, June 10, 2006

Oil prices and Subsidies

  1. Why has the price of fuel on the international market increased recently?
  • Since mid-2004, the price of crude oil has increased substantially on the world market. For example, the West Texas Intermediate (a reference price used in the United States and globally) increased from US$19 per barrel in 1993 to US$31 in 2003. In October 2004, it reached US$51 and in 2005 it went up to US$67 per barrel. (73 dollars on Monday 5/6/2006)
  • The main causes for these increases are:
- The existence of a tight market due to the small margin between production (83.0 million barrels per day(bpd)) and demand (82.5 million bpd);
- High demand for oil by China, India and the United States;
- Uncertainly of supply in some OPEC (Organization of Petroleum Exporting Countries) countries;
- Adverse weather conditions such as Hurricane Emily in Mexico, affecting oil production and
- Speculation on oil prices.
2. Our country produces oil. So why should we increase fuel prices?

    • The price of oil and petroleum products are determined by the international market based on supply and demand. These are factors beyond our control. OPEC also plays an important role in setting oil production levels which in turn, affect the market price. Although Malaysia produces and exports oil, we are not a member of OPEC, nor are we a major oil producing country. As such we have no influence on how the price of oil is determined in the international market.

    • If there is a large increase in oil prices on the world market, it affects the price of petroleum products such as diesel, petrol and cooking gas (LPG) in our country.

Friday, June 09, 2006

Petrolimex refuses cheap petrol because of high deposit

The Ministry of Trade (MoT) has sent a report to the Prime Minister, explaining why Petrolimex and Vinapco have refused to import cheaper petrol from an Australian supplier.
The case was brought to the spotlight after Pham Ngoc Ha, Director of the Hai Van Consultant and Trading Company, who was acting as a representative for Australian Crucible Minerals (ACM) and broker in the unsuccessful petrol supply bid, took details of the failed deal to the press.
ACM has been offering sales on behalf of Project Equity Nominees (PEN), which has been authorised by Project Equity Service Group (PESG) to sell products.
According to Mr Ha, if Petrolimex had begun purchasing petrol from the Australian company, it would have bought petrol at lower prices of around VND7,940/litre.
MoT found that ACM was established just over one year ago, on November 12, 2004. Meanwhile, according to Citibank Vietnam, PEN is not a client of Citibank Australia, and information available about the company is limited.
ACM, through the broker, offered a long term petrol supply deal, in which it will provide more than 200,000 tonnes for each kind of products to the key petrol importers, Petrolimex and Vinapco.
However, the payment terms requested by ACM prove ‘inappropriate’ to the merchandising traditions in Asia, which have long been applied by Vietnamese importers. Suppliers must show products to importers and discuss delivery time and place for every consignment of goods.
However, Petrolimex and Vinapco agreed to negotiate with ACM to purchase 25,000 tonnes of diesel worth $15mil, and 10-15,000 tonnes of Jet A1 worth $7-11mil respectively. However, ACM dismissed the deals stating “PESG is a wholesaler, not a retail group”. A Petrolimex official said that PESG will only sell if the clients order more than 200,000 tonnes for each deal.
ACM has requested that the buyer present a letter of guarantee granted by a bank, which guarantees deferred payment within 13 and a half months. However, petrol importers cannot pay security at banks to get the letter of payment guarantee.
“The deposit may reach several hundred million dollars, which is beyond our capability,” a Petrolimex official said.
MoT has also pointed out that a selling price of less than VND8,000/litre as Mr Ha suggests is unrealistic. The selling price would be higher after adding taxes and other expenses.
Minister of Trade Truong Dinh Tuyen told the press on June 5 that the Government has accepted the MoT explanation.

Source: VietnamNet