From oil and gas to green energy: Petrovietnam builds a circular value chain

Vietnam National Oil and Gas Group (Petrovietnam) is creating a unique symbiotic ecosystem where technology, values ​​and resources are closely linked and complement each other to increase efficiency and competitiveness. This model not only helps the Group optimize its operations in the context of energy transition and global market fluctuations, but also opens up the potential to become a model of sustainable development for many industrial complexes in Vietnam.

Energy - industry - service ecosystem.

Petrovietnam today is no longer recognized as a simple oil and gas corporation, but has grown into a comprehensive ecosystem, connecting three major pillars: energy, industry and services. On the foundation of traditional oil and gas, the Group still firmly maintains its role as a pillar in ensuring national energy security through exploration, exploitation and processing activities, in the context of declining reserves and increasing domestic demand. From crude oil, Petrovietnam forms closed industrial value chains with petrochemical, chemical and fertilizer refineries, both meeting domestic consumption needs and producing value-added products, creating room for sustainable exports.

Notably, the energy sector is witnessing a clear shift of Petrovietnam. The Group not only operates a series of power plants, especially leading in gas-fired power, contributing about 10-12% of the total national capacity, but also takes the lead in developing LNG power and clean energy sources. In addition, Petrovietnam's member units, typically the Vietnam Oil and Gas Power Corporation (PV Power) - are implementing a series of large-scale LNG power projects, while the Vietnam Gas Corporation (PV GAS) plays a key role in infrastructure and LNG supply. Currently, PV GAS has built the LNG Thi Vai port warehouse system - the first and largest LNG import port warehouse in Vietnam with a capacity of 1 million tons/year. The unit is also carrying out phase 2, with a plan to increase the capacity of Thi Vai LNG port warehouse to 3 million tons/year by around 2027, while continuing to invest in building other LNG warehouses in the North and Central regions to form a nationwide LNG receiving, storage and distribution network.

Petrovietnam has developed into a comprehensive energy - industry - service ecosystem, spanning from oil and gas exploration and exploitation to electricity, fertilizers, petrochemicals, renewable energy, technical services and logistics.

The establishment of LNG terminals not only ensures fuel supply for LNG power plants being deployed by PV Power and other units, but also opens up opportunities to provide clean fuel gas for industry, transportation and households. Thanks to the strategic network, Petrovietnam is gradually shaping its position as a national LNG center, being more proactive in importing, distributing and developing the modern gas market.

At the same time, PV Power is also expanding into new energy services such as electric vehicle charging infrastructure, with plans to develop 1,000 electric vehicle charging stations by 2035, while providing clean energy solutions for businesses. The cooperation between PV GAS and PV Power clearly demonstrates the orientation to lead the trend of electrification and emission reduction, not only in power generation but also in many other energy consumption areas.

Along with electricity, Petrovietnam has been researching and investing in renewable energy such as offshore wind power, solar power and green hydrogen. The Group's advantage lies in its existing oil and gas infrastructure with pipeline systems, seaports, and offshore technical services that can be fully utilized for renewable energy development. This opens up opportunities for Petrovietnam to become a pioneer in the clean energy sector in Vietnam.

In the industrial sector, Petrovietnam has built a solid foundation from petrochemicals and fertilizers. The two Phu My and Ca Mau Fertilizer Plants annually produce nearly 1.8 million tons of urea, meeting 70-80% of domestic demand, while also exporting to many international markets. This is not only a strategic source of supply to help stabilize the domestic market, but also an important step in building the chemical, engineering plastics and new materials industry, key areas to gradually reduce dependence on imported basic raw materials.

If energy and industry are the foundation, then services are the “extended arm” that increases the strength of Petrovietnam. Units such as Vietnam Oil and Gas Technical Services Corporation ( PTSC ), PetroVietnam Chemicals and Services Corporation (PVChem), and PetroVietnam Transportation Corporation (PVTrans) not only undertake technical services, surveys, rig construction, internal pipeline operations, logistics, etc. to serve domestic needs but also expand to the international market. About 30-40% of the workload of service enterprises comes from the international market, bringing in foreign currency and affirming Vietnam's position in the global oil and gas supply chain.

In particular, the offshore service capacity accumulated over many decades is becoming a great advantage for our country's offshore wind power development policy. The manufacturing port system, super-heavy equipment, and a team of experienced engineers can be quickly transferred to the renewable energy sector, opening up opportunities to form a new industry with great potential.

LNG Thi Vai Port Warehouse

From the connection between energy, industry and services, Petrovietnam is creating a complete ecosystem, in which each field develops independently, resonates and complements each other to optimize resources and enhance competitiveness. This is the foundation for the Group to not only maintain its pivotal role in ensuring national energy security, but also become a pioneer in energy transition, contributing to sustainable growth and enhancing Vietnam's position on the world energy map.

Symbiotic ecosystem - the driving force of value creation

The highlight of Petrovietnam’s development model is the close connection between sectors. According to the analysis of economic expert Nguyen Thuong Lang, this ecosystem clearly demonstrates three levels of resonance.

Associate Professor, Dr. Nguyen Thuong Lang (National Economics University): The Petrovietnam ecosystem clearly demonstrates three levels of resonance.

First, it is technological symbiosis. Technologies from mining, oil refining, electricity to chemical production do not exist separately but complement each other. This helps avoid waste, improve efficiency and form a closed technological cycle.

Second, there is value resonance. Each product in the oil - gas - electricity - fertilizer - chemical chain complements each other, forming a logical chain, minimizing excess or shortage. This mechanism helps the overall value of the ecosystem increase dramatically.

Third, is the resonance of resources. From capital, labor to market, all are linked and flexibly exploited to create the highest efficiency. This not only helps Petrovietnam to meet diverse customer needs, but also increases resilience to "shocks" in energy and global commodity markets.

Along with oil and gas and electricity, Petrovietnam has built large fertilizer factories such as Phu My Fertilizer and Ca Mau Fertilizer, meeting most of the domestic and export demand.

Thanks to these three levels of resonance, Petrovietnam's ecosystem not only develops sustainably, but can also become a reference model for many other industrial complexes in Vietnam.

Currently, the trend of gradually reducing the use of fossil energy, the requirement to reduce greenhouse gas emissions, along with fierce competition in the market and the huge capital demand for LNG and offshore wind power projects, are creating significant pressures. However, with Vietnam accelerating its energy transition, the demand for electricity and petrochemical products continuing to increase, along with advantages in infrastructure, finance and high-quality human resources, Petrovietnam has the basis and foundation to develop into a leading energy - industry - service group, contributing significantly to the country's goal of sustainable development and net zero emissions by 2050.

In the coming period, if it continues to promote its advantages, take advantage of opportunities and overcome challenges, Petrovietnam can completely become a symbol of the symbiotic development model "Technology - Value - Resources", making an even greater contribution to the Vietnamese economy.

According to petrotimes.vn

Source: https://www.ptsc.com.vn/tin-tuc/tin-dau-khi-1/tin-pvn/from-dau-khi-to-nang-luong-xanh-petrovietnam-xay-dung-chuoi-gia-tri-tuan-hoan