Gas industry affirms its position in Vietnam's economy

Vietnam's gas industry is undergoing a significant shift towards green energy. (Source: PVN)

For over 30 years, Vietnam's gas industry has proudly progressed alongside the country's development; it has actively contributed to ensuring national energy and food security, as well as the socio-economic development of the nation.

Proud of Vietnam's gas industry.

Vietnam began gas extraction in 1981 at the Tien Hai C gas field in Thai Binh province and oil and associated gas extraction in 1986 at the Bach Ho field on the southern continental shelf. The Bach Ho oil field was put into production by the Vietsovpetro joint venture on June 26, 1986. Until 1995, associated gas was separated from crude oil at the production platforms and had to be burned off due to the lack of conditions for collecting and transporting it ashore for use. Along with the increase in oil production, the amount of associated gas that had to be burned off increased significantly, causing resource waste and increased environmental pollution.

Therefore, the implementation of collecting, transporting associated gas ashore, and utilizing it for the national economy has become an urgent issue of concern to Party and State leaders at all levels, posing a new task for the Vietnamese oil and gas industry. This is not simply about solving the problem of gas burning and environmental pollution, but more profoundly, it is about recognizing the importance of natural gas resources and contributing to the acceleration of industrialization and modernization of the country.

Fulfilling 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 successively put gas projects into operation, developing Vietnam's gas industry with remarkable progress and growth, playing an important role in the national economy and energy and food security.

Since the first gas flow was brought ashore in April 1995, the gas industry has supplied over 176 billion cubic meters of dry gas, 27 million tons of LPG, and 2.2 million tons of light gasoline to the domestic market. Fulfilling its mission of providing environmentally friendly energy to serve the country's economic development, the gas industry is providing a stable source of raw materials and fuel for the production of nearly 10% of the national electricity output, 70% of the country's nitrogen fertilizer needs, and supplying diverse gas products including pipeline gas, LPG, CNG, and LNG as fuel for many industries and industrial zones nationwide.

With its investment focus on central LNG storage projects and research into clean energy production, PV GAS positions itself as a pioneering enterprise in Vietnam's green energy revolution.

PV GAS is preparing for the future, aiming not only to maintain but also to expand 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 Vietnam's gas industry, contributing to writing the next glorious chapters in the country's history.

(PV GAS General Director Pham Van Phong)

PV GAS, a member unit of PetroVietnam, is tasked with the leading role in building, developing, and guiding Vietnam's gas industry. Over the past nearly 35 years, it has completed a relatively comprehensive gas industry infrastructure system, including: 5 gas pipelines (Cuu Long, Nam Con Son 1, Nam Con Son 2, PM3 – Ca Mau, Ham Rong – Thai Binh) with a total pipeline length of over 1,500 km, connecting offshore and onshore, passing through many localities (provinces/cities: Ba Ria – Vung Tau, Dong Nai, Ho Chi Minh City, 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; and 14 LPG storage facilities nationwide with a total capacity of nearly 150,000 tons. A nationwide distribution system for gas/gas products, with filling stations located throughout the country.

Throughout its history, PV GAS has generated nearly 1.2 trillion VND in revenue, over 220 trillion VND in pre-tax profit, contributed over 106 trillion VND to the state budget, and currently possesses total assets of nearly 100 trillion VND.

It is evident that Vietnam's gas industry has continuously strived to become one of the pillars of the economy; with a system of gas infrastructure that is constantly expanding and improving, becoming increasingly large and modern; creating an increasingly strong and stable gas market; not only contributing high annual revenue, profits, and budget contributions, but also promoting the formation and development of industries that use gas products as raw materials and alternative fuels, replacing many old infrastructures using coal and oil… helping to minimize pollution and contributing to the national economy.

PV GAS, playing a leading role in Vietnam's gas industry, has achieved remarkable accomplishments, rightfully earning the title of Hero of Labor from the State.

Affirming its fundamental role in economic development.

In the current new phase and future vision, in the face of pivotal changes in the energy sector, there is a need for a shift in business structure and rapid, sustainable development of the oil and gas industry to effectively exploit and utilize the country's oil and gas resources; along with seizing opportunities, adapting to the energy transition, reducing emissions, and developing a green economy globally… To guide the development of the oil and gas industry in the next phase, on April 24, 2024, the Central 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 Strategy for the Development of Vietnam's Oil and Gas Industry to 2025, with a vision to 2035, and some orientations for the new phase. In particular, Conclusion 76 also demonstrates a deep concern for the development of the gas industry, identifying the gas industry as a foundation for the country's economic development.

Conclusion No. 76-KL/TW also outlined solutions to promote the gas industry in the new phase, such as: having a suitable and effective gas import plan (focusing on LNG), emphasizing long-term contracts; implementing a mechanism for transferring gas at par value and output as input fuel for power generation projects; building large-scale national energy centers integrating gas, LNG, and electricity; strengthening deep processing; researching and investing in petrochemical projects, including petrochemicals from gas;…

A complete, integrated, and modern gas infrastructure system. (Source: PVN)

Conclusion 76, along with national energy development orientations, strategies, and plans, and the requirements of energy transition, forms a crucial basis for building a development strategy for Vietnam's gas industry. In this context, PV GAS, playing a leading role in the country's gas industry, has been focusing on developing a strategy aligned with the orientations set by leaders at all levels and PetroVietnam. Simultaneously, in line with market trends in the economy, PV GAS recognizes that developing the gas industry is synonymous with developing the energy sector towards energy diversification, moving towards a green industry, reducing emissions, and further ensuring national energy security.

Based on this, PV GAS aims to prioritize the utilization of domestic gas resources for processing and value-added products, while simultaneously developing the LNG industry to seize opportunities from the global market. PV GAS has also begun researching feasible approaches to the production and blending of zero-emission gas products such as green hydrogen and green ammonia for trial use on existing PV GAS and PetroVietnam infrastructure;…

With the identification of the gas industry, with PV GAS as the core, as playing a fundamental role in the country's economic development in Conclusion 76-KL/TW, PV GAS recognizes this as both an honor and a heavy responsibility; and will be determined to implement and put the resolution into practice through specific action programs.

At the same time, PV GAS will continue to leverage its strengths as a key unit of PetroVietnam, playing a crucial role in the construction and development of the gas industry for over 30 years, and pioneering in the LNG sector to implement the integration of domestic and imported gas value chains associated with the development of new green energy products.

(Chairman of the Board of Directors of PV GAS, Nguyen Thanh Binh)

These development directions have been and are being diligently implemented by PV GAS with high determination and effort, initially opening up promising new paths for PV GAS as well as the Vietnamese gas industry. This includes the commissioning of the first LNG terminal, putting Vietnam on the world LNG business map; successfully transporting LNG by rail from South to North and distributing LNG to industrial customers nationwide under an integrated business model with diverse gas products; promoting gas market development; expanding investment and development;… The achievements affirm PV GAS's capabilities, strong transformation, and commitment to the green energy journey, contributing to energy supply for development in the "era of national progress" with expectations of strong breakthroughs.

Thanks to the timely and correct attention and guidance from the Party and State leaders, ministries and agencies at all levels; the strong guidance and support from PetroVietnam; and the determined efforts of PV GAS, the path forward is gradually opening for Vietnam's gas industry to continue developing strongly, expanding and diversifying further to meet the ever-increasing needs of society and contribute even more to the national economy.

Source: https://baoquocte.vn/cong-nghiep-khi-khang-dinh-vi-the-trong-nen-kinh-te-viet-nam-295136.html