Stature of Vietnam’s Gas Industry
From "concept to reality," transforming the "impossible into possible," the industry has developed dynamically, growing stronger and establishing an increasingly important position in the national economy.
An Indispensable Energy Source of the Nation
The Bach Ho oil field was brought into production by Vietsovpetro on June 26, 1986. Until 1995, associated gas was separated from crude oil at the offshore platforms and had to be flared due to the lack of facilities for collection and transportation to the shore for use. With the increasing oil production, the volume of flared associated gas grew, leading to significant resource waste and environmental pollution. This situation urgently required the development of infrastructure to collect and transport associated gas to shore for utilization in the national economy.
The first gas flow was introduced in 1995
With the high determination of the Politburo, Vietnam Oil and Gas Group (Petrovietnam), and Petrovietnam Gas Corporation (PV GAS), efforts were made to gradually build and put gas projects into operation. This step-by-step approach realized the goal of effectively exploiting, collecting, and utilizing gas resources to meet energy demands and support the country's economic development.
From May 1995, the first gas flow was brought ashore, marking the beginning of the formation and development of the gas industry in Vietnam. This milestone also ushered in a new chapter for the Vietnam Oil and Gas industry. Through relentless effort, continuous learning, creative labor, and effective utilization of global experience via cooperation with foreign companies, Petrovietnam and PV GAS have gradually built a robust Vietnamese gas industry. By applying and transferring scientific and technological advancements, they have established the gas industry as an indispensable energy source for the nation, utilized across various sectors including electricity, industry, transportation, and residential use.
Vietnam’s gas industry contributes to the country’s development
Today, the country boasts a comprehensive gas infrastructure covering all stages: collection – export/import – transportation – processing – storage – and distribution of gas and gas products. PV GAS now operates five gas systems with a total pipeline length of over 1,500km, three gas processing plants with a total capacity exceeding 15 billion cubic meters per year, and LPG storage facilities with a capacity of nearly 150,000 tons nationwide. The Corporation also has an extensive network of distribution and stations across the country.
The Corporation’s infrastructure has continuously been expanded and upgraded. In 2023, PV GAS put into operation the 1 MMTPA Thi Vai LNG Terminal. This facility added approximately 1.4 billion cubic meters of gas supply annually, contributing significantly to national energy security and economic development.
With its leading role in Vietnam's gas industry, PV GAS currently transports and supplies 8-10 billion cubic meters of gas annually. This ensures the input needed to produce nearly 10% of the country's electricity output, meet 70% of the national fertilizer demand, and serve various industries. In Vietnam, PV GAS holds 100% of the dry gas market share, 70% of the wholesale LPG market share, and about 11% of the retail LPG market share. The Corporation’s annual revenue is between 3.5 and 4 billion USD, with pre-tax profits ranging from 500 to 700 million USD. It contributes around 300 million USD to the state budget annually and has total assets worth approximately 3.6 billion USD. Being a flagship entity of Petrovietnam, PV GAS is recognized as an exemplary enterprise in numerous prestigious rankings both domestically and internationally.
Pioneering a New Journey
Looking ahead, in the coming phase, Vietnam’s gas industry, in general, and PV GAS, in particular, are expected to be impacted by the energy transition trend and the increase in renewable energy sources. Moreover, the implementation of gas-power projects still faces many unresolved issues due to the involvement of multiple stakeholders and factors across the entire gas-power chain from upstream to downstream. LNG projects encounter numerous challenges related to supply sources, the market, and specific policy mechanisms. Consequently, industryis gradually entering a new phase of development.
In response to the demands of this new phase and guided by the development orientation: "Build and develop PV GAS into a leading unit in the gas industry, playing a key role in driving Vietnam’s gas market and contributing to national energy security," the Corporation has undertaken extensive preparations to sustain and advance its growth trajectory. PV GAS has been, and will continue, focusing on solutions to enhance the efficiency of its existing gas infrastructure. Additionally, the Corporation emphasizes and intensifies efforts to invest in developing its infrastructure and promotes market development by diversifying products and consumer segments.
PV GAS's market is directed towards expansion and development based on strengthening its traditional market/customer base. The traditional market serves as a solid foundation and driving force for building and developing new markets/products/customers, including investing in new infrastructure that anticipates trends with high value-added, ensuring sustainable and long-term efficiency for PV GAS. Accordingly, future flagship products of the Corporation will include LNG, processed and deep-processed gas products, as well as green energy products like hydrogen and ammonia.
All towards a bright future of the industry
It can be said that our country's gas industry has made steady and convincing progress in recent years, with a promising future that ensures stable and long-term development. This growth accompanies the mission of building, developing, and protecting the nation, continuing the journey towards broader horizons – the "Green Energy Journey."