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| Vietnam's gas industry is shifting strongly on the green energy journey. (Source: PVN) |
Over the past 30 years, the Vietnamese gas industry has proudly accompanied the country's development steps; has been actively participating in ensuring national energy security, food security, as well as developing the country's socio-economy.
Proud of Vietnam gas industry
Vietnam began exploiting gas in 1981 at Tien Hai C gas field - Thai Binh and exploiting oil and associated gas in 1986 at Bach Ho field on the southern continental shelf. In particular, Bach Ho oil field was put into operation by Vietsovpetro Joint Venture on June 26, 1986. Until 1995, associated gas was separated from crude oil at the exploitation platforms and had to be burned because there were no conditions to collect and transport it ashore for use. Along with the increase in oil production, the amount of associated gas that had to be burned was increasing, causing waste of resources and increasing environmental pollution.
Therefore, the implementation of collecting and transporting associated gas to shore and using it for the national economy has become an urgent issue that has received attention from Party and State leaders at all levels, and has set a new task for the Vietnam Oil and Gas industry. This is not simply a solution to the problem of gas burning and environmental pollution, but more deeply, it is also an awareness of the importance of natural gas resources, contributing to promoting the industrialization and modernization of the country.
Carrying out the tasks assigned by the Party and the State, the Vietnam Oil and Gas Group (PetroVietnam) and the Vietnam Gas Corporation (PV GAS) have gradually built and put gas projects into operation, developing the Vietnamese gas industry with remarkable progress and growth, playing an important role in the economy, energy security and national food security.
Since the first gas flow was brought ashore in April 1995, the gas industry has supplied over 176 billion m3 of dry gas, 27 million tons of LPG, and 2.2 million tons of light gasoline to the domestic market. Carrying out the mission of bringing environmentally friendly energy to serve the country's economic development, the gas industry is providing a stable source of raw materials and fuel to produce nearly 10% of the country's electricity output, 70% of the country's nitrogen fertilizer demand, and providing diverse gas products including pipeline gas, LPG, CNG, and LNG as fuel for many industries and industrial zones nationwide.
With the orientation of investing in central LNG warehouse projects and researching clean energy production, PV GAS positions itself as a pioneer in Vietnam's green energy revolution. PV GAS is preparing for the future, with the goal of not only maintaining but also expanding its position in the international market, while contributing to bringing the country closer to the Net Zero target by 2050 as committed by the Government at COP26; affirming the role of the Vietnamese gas industry, contributing to continuing the glorious history of the country. (PV GAS General Director Pham Van Phong) |
PV GAS, a member unit of PetroVietnam, is assigned the main task of building, developing and leading the Vietnamese gas industry. Over the past 35 years, it has completed a relatively complete gas industry infrastructure system including: 5 gas systems (Cuu Long, Nam Con Son 1, Nam Con Son 2, PM3 - Ca Mau, Ham Rong - Thai Binh) with a total length of gas pipelines of over 1,500 km leading from offshore - Vietnam's continental shelf, to shore, passing through many localities (provinces/cities: Ba Ria - Vung Tau, Dong Nai, Ho Chi Minh, Ca Mau, Thai Binh); 3 gas processing plants (Dinh Co Gas Processing Plant, Nam Con Son Gas Processing Plant and Ca Mau Gas Processing Plant) with a total capacity of over 10 billion m3/year; 14 LPG storage facilities nationwide with a total capacity of nearly 150 thousand tons; Gas/gas product distribution system, filling stations nationwide.
Throughout its history of formation and development to date, PV GAS has brought in revenue of nearly 1.2 million billion VND, pre-tax profit of over 220 trillion VND, paid the state budget over 106 trillion VND and currently owns total assets of nearly 100 trillion VND.
It can be seen that the Vietnamese gas industry has constantly grown to become one of the pillars of the economy; with a system of gas works that is continuously expanded and completed, increasingly large and modern in scale; creating an increasingly strong and stable gas market; not only contributing with high annual revenue, profit, and budget payment, but also promoting the formation and development of industries using gas products as raw materials and fuels to replace many old infrastructures using coal, oil, etc., helping to reduce pollution and contribute to the country's economy.
PV GAS, with its leading role in leading the Vietnamese gas industry, has made proud achievements and is worthy of being awarded the title of Labor Hero by the State.
Affirming the fundamental role for economic development
In the current new period and future vision, facing the turning point changes of the energy industry, there is a requirement to shift the business structure, develop the oil and gas industry rapidly and sustainably to exploit and effectively use the country's oil and gas resources; along with that, taking advantage of opportunities, adapting to the energy transition, reducing emissions, developing a green economy globally... To orient the development of the oil and gas industry in the next period, on April 24, 2024, the Central Executive Committee issued Conclusion 76-KL/TW on the implementation of Resolution No. 41-NQ/TW dated July 23, 2015 of the Politburo on the orientation of the Vietnam Oil and Gas Industry Development Strategy to 2025, with a vision to 2035 and some orientations for the new period. In particular, Conclusion 76 also shows deep concern for the development of the gas industry, when identifying the gas industry as the foundation for serving the country's economic development.
Conclusion No. 76-KL/TW also pointed out solutions to promote the gas industry in the new period such as: Having a suitable and effective gas import plan (focusing on LNG), focusing on long-term contracts; implementing a mechanism for transferring prices and gas output as input fuel for power generation projects; building large-scale national energy centers integrating gas, LNG - electricity, ...; increasing deep processing; researching and investing in petrochemical projects, including petrochemicals from gas; ...
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| Complete, synchronous and modern gas works system. (Source: PVN) |
Conclusion 76, along with the orientations, strategies, and plans for national energy development, the requirements of energy transition are an important basis for building a development strategy for the Vietnamese gas industry. In particular, with its leading role in the country's gas industry, PV GAS has been focusing on building a development strategy in line with the orientations set by leaders at all levels and PetroVietnam. At the same time, with the market trends of the economy, PV GAS determines that developing the gas industry means developing the energy industry in the direction of diversifying energy sources, moving towards a green industry, reducing emissions, and further ensuring national energy security.
On that basis, PV GAS aims to prioritize the utilization of domestic gas resources for processing and increasing product value in parallel with the development of the LNG industry to seize opportunities from the world market. PV GAS also begins to research feasible directions in the production and blending of zero-emission gas products such as green hydrogen, green ammonia for trial use on the existing infrastructure systems of PV GAS and PetroVietnam;...
By identifying the gas industry, of which PV GAS is the core, as playing a fundamental role in the country's economic development in Conclusion 76-KL/TW, PV GAS recognizes that it is an honor but also a very heavy responsibility; and will be determined to implement and put the resolution into practice with specific action programs. At the same time, PV GAS will continue to promote its advantage as a key unit of PetroVietnam, playing a key role in building and developing the gas industry for over 30 years, pioneering in the LNG sector to deploy the integration of domestic and imported gas value chains associated with the development of new green energy products. (Chairman of PV GAS Board of Directors Nguyen Thanh Binh) |
Those development orientations have been and are being implemented by PV GAS with great determination and effort, initially opening up new promising paths for PV GAS as well as the Vietnamese gas industry. These include putting into operation the first LNG port warehouse, putting Vietnam on the world LNG business map; successfully transporting LNG by rail from the South to the North and distributing LNG to industrial customers across the country according to the integrated business model of diverse gas products; promoting the development of the gas market; expanding investment and development;... The achieved results affirm the capacity, strong transformation, as well as the commitment of PV GAS to the green energy journey, contributing to providing energy for development in the "era of national growth" with strong breakthrough expectations.
From the attention and very correct and timely orientation of the leaders of the Party, State, ministries and branches; the strong orientation and support from PetroVietnam and the efforts and determination of PV GAS are gradually opening the way forward for the Vietnamese gas industry to continue to develop strongly, expand and diversify further to meet the increasing needs of society, contributing more to the country's economy.
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