PV GAS affirms its core role of Vietnam's gas industry
On the occasion of the 2025 Lunar New Year, journalists had an exchange with Mr. Nguyen Thanh Binh, Party Committee Secretary and Chairman of PV GAS’ Board of Directors (BOD), to reflect on the remarkable progress of the Corporation over the past year and discuss its future direction.
Mr Nguyen Thanh Binh
Interviewer: Recently, we have witnessed the strong momentum of PV GAS on the "Green Energy Journey," especially in 2024. As we approach the new year 2025, looking back at 2024, what do you consider the most outstanding achievements of the Corporation?
Mr. Nguyen Thanh Binh: For PV GAS, 2024 can be described as a highly successful year in many aspects. Despite facing significant challenges, particularly a sharp decline in gas consumption (over 15% compared to 2023), we implemented comprehensive solutions with the close support and guidance of the Government, Ministries, and Vietnam Oil and Gas Group (Petrovietnam). PV GAS excellently completed its production and business targets for 2024, with consolidated revenue surpassing the VND 100,000B for the second time. Pre-tax profit reached approximately VND 13,000B. Importantly, in 2024, PV GAS ensured stable supply for industrial customers, especially power plants, to meet national energy security goals. This was also the first year we supplied over 200 million cubic meters of LNG to gas-fired power plants in Vietnam. This reaffirms PV GAS' commitment to the "Green Energy Journey" – pioneering and accompanying the country's new development steps while providing significant opportunities for PV GAS in the coming years.
Interviewer: In the new year 2025, could you share PV GAS' development direction?
Mr. Nguyen Thanh Binh: We consider 2025 a pivotal year for PV GAS, as it marks the 11th Party Congress of the Corporation, setting the five-year plan (2025–2030) and the development direction for PV GAS until 2045. We anticipate a period of intertwined opportunities and challenges. On the bright side, after extensive efforts and reporting to authorities, the oil and gas sector, particularly Petrovietnam and PV GAS, has received strategic policies from the Party and State for development. Notable examples include Conclusion No. 76-KL/TW by the Politburo and the amended Electricity Law, which recognize the gas industry as foundational and establish mechanisms for long-term gas power mobilization, shared LNG infrastructure development, and a focus on long-term LNG import contracts.
However, there are also many difficulties and challenges, such as the continued decline in domestic production, the strong global and domestic energy transition trend, increasing competition from both domestic and foreign players, and the lack of synchronized and institutionalized legal frameworks for the gas, electricity, and LNG sectors.
To survive and grow in this new context, PV GAS has been adjusting its development strategy and business model to maintain its position as Vietnam's leading and pioneering unit in gas industry infrastructure, gas business, gas products, and especially LNG. Additionally, PV GAS is focusing on market development, expanding its business scale through an integrated energy model to capture market share, and gradually researching and deploying green energy projects such as hydrogen and ammonia.
PV GAS Party Committee receives Commendation for Outstanding Performance from Petrovietnam Party Committee
We will continue to focus on core business activities and infrastructure investment to continuously improve the supply chain. Notably, one of the most critical tasks for PV GAS is investing in LNG imports to ensure supply for power plants under the Power Development Plan VIII (PDP8). From now until 2030, there are only about five years left, but PDP8 requires the implementation of 15 LNG-to-power projects, necessitating a massive fuel supply for these plants, estimated at 14.5 million tons of LNG annually by 2030 and 16.4 million tons by 2035. Facing this target, as the leading unit in Vietnam's gas industry and the sole entity responsible for supplying gas for power production, PV GAS sees a significant opportunity to maintain its position as the top LNG supplier for gas-fired power plants in Vietnam.
In addition to the 1 MTPA Thi Vai LNG Terminal in Ba Ria – Vung Tau, which went into operations in 2023, we are actively implementing LNG storage projects, such as expanding Thi Vai LNG terminal to 3 MTPA, developing the 3.6 MTPA Son My LNG terminal in Binh Thuan, and seeking investment locations in the North and North Central regions of Vietnam. Simultaneously, PV GAS continues to invest in improving the domestic transportation system to meet customer needs. PV GAS aims to become the leading unit in gas/LNG infrastructure and distribution.
Interviewer: LNG is a new field in Vietnam and faces many challenges and difficulties in terms of investment for both gas import infrastructure and LNG-fired power projects, especially due to incomplete policy mechanisms. What solutions do you propose for achieving the country's LNG goals in general and PV GAS' goals in particular?
Mr. Nguyen Thanh Binh: Issues related to LNG have been discussed over the past period, covering all aspects such as the need for long-term contracts and central LNG terminals. Global experience shows that in countries with conditions similar to Vietnam, the role of the State is crucial. Special mechanisms and consistent State guidance are needed to ensure the gas-to-power project chain is transparent, efficient, and meets deadlines while attracting investors. Therefore, without the State's role, leaving businesses in this chain to operate under market mechanisms in the initial stages would lead to unmet deadlines, competition, and pricing goals, ultimately affecting consumers. Thus, we believe that special policy mechanisms are needed, leveraging the role of State-owned enterprises and specialized businesses to implement gas/LNG goals under PDP8 and the national energy strategy.
The Party and State have already issued specific policies on promoting the role of leading State-owned enterprises with deep expertise in their fields. We hope the State will establish mechanisms assigning Petrovietnam/PV GAS, as a specialized unit, to build infrastructure, central LNG terminals, and LNG supply hubs for power plants, ensuring both energy security and market-oriented economic goals. This will enhance the role of specialized State-owned units in achieving socio-economic objectives, ensuring investment efficiency, and aligning with the State's direction in transitioning to green and clean energy solutions, aiming for Net Zero by 2050.
Regarding policy direction, the Party and Government have provided clear guidance in Resolution 55, Resolution 41, Conclusion No. 76-KL/TW by the Politburo, and Resolution 38/NQ-CP by the Government on the development strategy for Vietnam's oil and gas industry, as well as Decision 2233/QĐ-TTg by the Prime Minister approving the competitive energy plan to 2030, with a vision to 2045. These documents emphasize the foundational role of the gas industry, focusing on long-term contracts and central LNG terminals. The next step is to promote solutions to concretize and implement these resolutions and conclusions.
Interviewer: A significant event for the oil and gas industry in 2024 was the Politburo's issuance of Conclusion No. 76-KL/TW, setting new directions for the sector's development. Could you elaborate on the directions for developing the gas industry? As the core of the gas industry, how is PV GAS implementing the tasks outlined in Conclusion No. 76-KL/TW?
Mr. Nguyen Thanh Binh: Conclusion No. 76-KL/TW (KL76) holds immense significance for Petrovietnam's development in the "Era of National Rise" as a National Industrial-Energy Group. According to KL76, the gas industry is identified as a foundational sector, not only for the Group and the oil and gas industry but also for the socio-economic development of the country. As the core and leading unit in the gas industry, we feel honored and proud but also bear immense responsibility in implementing these directions. We recognize these as critical elements directly and profoundly impacting PV GAS' development and strategy in the coming period, serving as the basis to define its position and build its development strategy to 2030, with a vision to 2050, meeting the set goals and requirements.
To bring resolutions to life, we need methods, tools, and people. Alongside the Politburo's directions in KL76, the Government's implementation under Resolution 38/NQ-CP, and the Petrovietnam Party Committee's Resolution No. 826/NQ-ĐU, in 2024, PV GAS Party Committee also developed and issued Resolution No. 316-NQ/ĐU, outlining the action program of the BOD and the steps for the CEO and Board of Management to promptly implement KL76 and other resolutions into the Corporation's business operations.
PV GAS' Green Energy Journey
At the upcoming grassroots-level Party Congresses and PV GAS Party Congress, one of the key tasks we identify is concretizing and bringing the Party Congress' resolutions and KL76 into the daily operations of each PV GAS unit. Accordingly, we aim to ensure that the political reports for the Congress align with PV GAS and Petrovietnam's, and the industry's development strategies, as well as the directions of KL76. We also aim to build a capable, dedicated, and talented workforce to ensure the successful implementation of goals and strategies.
Interviewer: 2025 is a year of many important milestones and events for the country, the industry, and Petrovietnam towards its 50th anniversary. PV GAS will also mark 35 years of development. On the occasion of the new year, could you share your expectations and aspirations for PV GAS' development in this special year?
Mr. Nguyen Thanh Binh: I expect and believe that, with a solid foundation, proactive adaptation, and a development aspiration under the spirit of "One Team, One Goal," along with the support of the Government, ministries, and Petrovietnam, in 2025 and beyond, PV GAS will continue to overcome all challenges, seize opportunities, and excellently complete its assigned tasks, deserving its role as a pillar and key unit of Petrovietnam. As the leading unit in Vietnam's gas industry, PV GAS will actively contribute to achieving the Group's and the industry's strategic goals, as well as the country's rapid and sustainable growth in the new era, aligned with the energy transition toward greener and cleaner energy.