Great contribution to national energy security

Developing sustainable energy sources is extremely important to the sustainable economic and social development of the nation. On February 11, 2020, the Politburo issued Resolution No. 55-NQ/TW to shape Vietnam's national energy development strategy to 2030, with a vision to 2045, in which the perspective of gas industry development is: "Developing Vietnam's gas industry synchronously in all stages"; “prioritizing production and consumption of clean energy sources”; “prioritizing electrification development”; "focusing on the rapid development of gas-fired thermal power plants, making gas power an important source of power supply, supporting system regulation” among others. This outlines directions and shapes a corridor for enabling the rapid development of gas industry into an important national energy source.

Based on Resolution No. 55-NQ/TW of the Politburo, the Prime Minister also approved the project on competitive energy market development in Decision 2233/QD-TTg, dated December 28, 2020 which clearly defines "The gas market from 2021 to 2025 will be built and developed on the principle of promoting the leading role of State-owned enterprises: Vietnam National Oil and Gas Group (Petrovietnam) and Petrovietnam Gas Corporation (PV GAS).

PV GAS has been trying to effectively fulfill its key role in the Vietnam Gas Industry Development Strategy and Planning and leading the Vietnamese gas industry to develop safely and sustainably, bringing high socioeconomic efficiency, ensuring national energy security and advancing international integration.

After 31 years of development, PV GAS has gradually developed and currently managed a relatively complete gas industry infrastructure system in Vietnam (including five gas pipeline systems of over 1,500 km long, three gas treatment plants with a total annual capacity of over 10 billion cubic meters, 14 LPG storage facilities of nearly 150,000 tons, a nationwide gas and gas product distribution system) with an asset value of over VND70 trillion. Currently, every year, PV GAS provides inputs and fuels for the generation of nearly 15% of electricity output, 70% of the country's nitrogenous fertilizer demand and fuel for many industrial parks. It accounts for 100% of the dry gas market share, about 70% of the wholesale market share and about 12% of the domestic LPG retail market. Over the past 31 years, PV GAS has supplied over 155 billion cubic meters of dry gas, nearly 20 million tons of LPG and about 2 million tons of condensate, made total revenue of about VND915 trillion, earned a profit before tax of over VND175 trillion, and paid nearly VND85 trillion to the State Budget.

Effectively developing the leading role of the gas industry

Facing obstacles such as the complicated development of the COVID-19 pandemic; rising competition in LPG trading and LNG supply; declining share of lowly-priced gas sources and changeable mechanisms and policies, PV GAS has worked out a full plan to ensure sustainable development and match inevitable trends.

PV GAS's policy is to strengthen and improve competitiveness to maintain and effectively develop the leading role of State-owned gas enterprises, effectively perform its role as a leading and controlling regulatory tool of the government in the gas industry and strengthen research, investment, transformation to match the market.

Therefore, PV GAS shapes its development on two pillars: Further maintain and expand existing fields and develop new fields, with a focus on developing the LNG business in addition to downstream processing and product diversification.

Specifically, on gas collection and transportation, PV GAS diversifies supply sources; maintains the leadership in gathering and receiving all domestic gas sources and participates in foreign markets; builds and develops a complete and synchronous gas industry infrastructure system nationwide in consistence with the gas and LNG development, import and consumption plan; gradually forms national and regional gas pipeline systems; joins domestic and foreign upstream investment to actively source gas and improve PV GAS' position.

Regarding gas and LNG import, PV GAS strives to play the pivotal role in gas and LNG investment and import for consumers nationwide in order to effectively foster its role as a management and regulatory tool of the government in the gas and LNG market; prioritizes resources in invest in infrastructure for LNG import and distribution to ensure a stable and long-term supply for existing customers, stimulate formation and development of new customers; and develops Thi Vai, Binh Thuan and Northern areas into national LNG hubs. It plans to import LNG from 2022.

Besides, PV GAS reinforces gas processing and diversification to increase gas value and output; conducts research and development of renewable energy sources and conversion of energy and industrial gases: hydrogen, nitrogen, ethane, ethylene, naphtha, argon, methanol, PE, PP and cogeneration products (e.g. hot gas and cold gas).

On gas and LNG trading, PV GAS orients safe and efficient business of domestic and imported gas and LNG to meet a stable long-term supply for existing customers, enhance competitiveness in gas and LNG supply to new consumers (power plants, chemical plants, industrialists and transportation firms), and promote safe and effective development and trading of low-pressure gas products, CNG, LNG, LPG and condensate of PV GAS.

On gas service, PV GAS will continue to develop highly competitive specialized gas services (processing, operation, logistics, pipe production and pipe coating, gas service chain linkage, industrial park infrastructure and others), meet development requirements of PV GAS and Vietnam's gas industry and readily join overseas operations when there is an opportunity. The corporation targets to provide a 100% market share of pipeline gas transportation nationwide and provide maximum pipe manufacturing and coating services for gas projects.

To develop into a strong and competitive brand in the regional and global gas industry, fully operate all stages of the gas value chain and gas products, play a key role in the safe, sustainable and modern development of Vietnam's gas industry, PV GAS strives to achieve average annual revenue growth of 8-9%, hold 100% of the dry gas market share, over 50% of the LNG market share, over 50% of the domestic LPG market share, and attain a return on equity of over 20% a year.

By a long shot, these challenging goals are showing a potential picture of Vietnam's future gas industry shaped by extensive, synchronous and sustainable regional and international development to meet requirements of bringing green and clean energy sources for the country's socio-economic development and ensuring the nation's energy and food security.