Gas industry adapting to new trends
Intending to drive growth, PVGas has identified the focal tasks for the 2024-2025 period as business model transformation, focusing on market development to serve as a long-term growth driver.
Meeting consumer demand
In mid-March, PVGas officially began supplying LNG for industrial production while introducing an integrated business model, including liquefied petroleum gas (LPG)/compressed natural gas (CNG)/LNG. This event marked a crucial milestone for the enterprise in completing the LNG infrastructure in the southern region, including the import terminal, storage facility, regasification system, and pipeline network for supplying electricity, industrial customers, and tanker stations. With LNG products entering the market, the company has a comprehensive fuel gas product portfolio for industrial customers, including pipeline natural gas, CNG, LPG, and LNG. Additionally, PVGas will provide energy solutions for the market with diverse options, ensuring quality, supply, and competitive prices.
Successfully receiving the first LNG shipment to Thi Vai LNG Warehouse. |
According to PVGas General Director Pham Van Phong, supplying LNG for industrial production is a significant milestone in the unit's LNG value chain development process, fulfilling commitments to provide customers with greener, cleaner energy solutions in alignment with the government's Net Zero commitments by 2050. This also meets the needs of industrial customers transitioning to green production to meet new international energy transition standards. "By offering an integrated energy solution package including dry gas, CNG, LPG, and LNG, the company ensures the provision of sustainable energy solutions, competitive prices, and various accompanying services, such as maintenance and infrastructure, thereby providing optimal choices and sustainable added value for customers," affirmed Mr Pham Van Phong.
PVGas Deputy General Director Nguyen Cong Luan added that LNG is a superior energy source with outstanding advantages in energy efficiency, environmental friendliness, convenience in transportation, and supply. Therefore, the unit continues to invest in LNG value chain infrastructure to provide optimal energy solutions for the market. Notably, LNG distribution via tankers, ships, and railways will ensure a continuous, efficient, high-performance energy supply chain for PVGas partners, ensuring compliance with the unit's gas market development strategy.
“In Vietnam, PVGas currently holds a 100% market share in dry gas and a 70% market share in LPG. To meet the gas demand for industrial production in Vietnam, the unit will commence Phase 2 of the Thi Vai LNG Warehouse with an increased capacity of three million tons per year, scheduled to be operational by 2026; launch the Central LNG Port Warehouse project in Son My, Binh Thuan, with a total capacity of six million tons per year, and implement LNG central port warehouse investment projects in the North and Central North regions. Additionally, the unit has established agreements with major LNG suppliers worldwide to ensure stable and competitive supply for the domestic market,” emphasised Mr. Nguyen Cong Luan.
Perfecting mechanisms and policies
PVGas General Director Pham Van Phong also stated that to achieve production and business goals, promptly put gas supply plans (LPG, LNG) in the North into operation, continue to actively participate in the international LPG, LNG trading market, and provide gas as raw material, the unit will continue to improve management, flexibly deploy solutions to promote production, business, and achieve growth targets. In addition, the unit will work with competent agencies to resolve policy and mechanism issues, especially policies and mechanisms for infrastructure investment and LNG consumption, as well as fees for invested pipelines. In the gas industry development strategy until 2030 and beyond, PVGas focuses on thoroughly implementing development strategies, diversifying markets and gas products, and investing in and developing LNG business as a growth driver. Specifically, the focus will be on supplying gas to gas-fired power plants; strong development, increasing the proportion of gas consumption outside of electricity with the goal of industrial and transportation customer growth of 10% per year; enhancing international LPG, LNG business activities to maintain a 70% market share in domestic LPG business, and international business of over one million tons per year. Additionally, PVGas plans to participate in providing LPG as a raw material for the oil refining sector; developing services based on advantages (transportation, storage; leasing port infrastructure, pipelines, warehouses; consultancy, maintenance, and maintenance services); research, experiment, and introduce hydrogen blending into gas for household consumption; leveraging cold energy for gas production and industrial gas business development.
Assessing the market outlook in the coming time, PVGasGeneral Director Pham Van Phong acknowledges that the unit must face many difficulties and challenges, especially the rapid decline in domestic gas sources, reduced gas demand from electricity and industrial consumers, instability due to energy transition trends, declining coal prices, and economic difficulties and the LNG supply to new consumer households has not yet been implemented.However, with the focus of the 2024-2025 period on business model transformation, the unit will focus on developing the market as a long-term growth driver, providing impetus for enterprises to overcome difficulties and achieve set goals.
Reflecting on the company’s activities, PVN Chairman Le Manh Hung noted that PVGas needs to focus on resolving policy and mechanism obstacles, promoting domestic market development and international trade development in line with PVN's ecosystem as a driving force for strategy implementation, focusing on developing related services such as storage, transportation, infrastructure business, forming a sharing economy model; building a supply chain security strategy; optimising production, replicating efficient models, and experimenting with new models; promoting research and development, digital transformation, and innovation to drive enterprise development.
See also
IC development challenges Dong Nai Province
14:00 | 07/05/2024 Industry promotion
Textile and garment businesses face difficulties due to lack of domestic supply
05:00 | 07/05/2024 Industry
Automobile industry reported strong sales in Q1
06:00 | 05/05/2024 Industry
DPPA boots renewable energy, competitive electricity market
15:06 | 03/05/2024 Energy
Maintaining growth momentum of textile and garment sector
06:00 | 03/05/2024 Industry
No power shortage under any circumstances: Minister
06:00 | 01/05/2024 Energy
See more news
More connection needed for market expansion
06:00 | 29/04/2024 Support industries
Energy industry needs nearly 5 trillion VND of investment in 2021-2030
10:44 | 26/04/2024 Energy
Nghe An accelerates progress of local industry promotion
14:00 | 24/04/2024 Industry promotion
Hanoi enhances industrial cluster development
14:00 | 23/04/2024 Industry promotion
HCM City moves towards Net Zero
05:00 | 20/04/2024 Industry
Garment & textile sector tries to keep growth momentum
06:00 | 18/04/2024 Industry
French businesses tap potential of green development trends in Vietnam’s construction industry
09:18 | 16/04/2024 Industry
MoIT accelerates 500kV circuit-3 transmission line project
06:00 | 16/04/2024 Energy
Majority of enterprises forecast positive performance in Q2 2024
13:18 | 15/04/2024 Industry
Dong Nai expands role of industry promotion collaborators
14:00 | 11/04/2024 Industry promotion
Grand ceremony, parade mark 70th anniversary of Dien Bien Phu Victory
19:33 | 07/05/2024 News and Events
“The Road to Dien Bien Phu” full of emotion
14:59 | 07/05/2024 Lifestyle
IC development challenges Dong Nai Province
14:00 | 07/05/2024 Industry promotion
Vietnam, France agree to strengthen their strategic partnership
11:21 | 07/05/2024 Vietnam and EU
PM offers incense to fallen soldiers in Điện Biên Phủ
09:51 | 07/05/2024 News and Events
Multimedia
Green transformation in tourism starts with correct understanding, awareness: expert
06:00 | 07/05/2024 Tourism
Vietnamese celebrated director to head jury at Shanghai International Film Festival
06:00 | 07/05/2024 Lifestyle
HCM City achieves $127 million in tourism revenue over five-day holiday
06:00 | 04/05/2024 Tourism
Optimising UNESCO titles for national development
06:00 | 04/05/2024 Lifestyle
7 places that are worth a visit in Điện Biên
06:00 | 05/05/2024 Tourism
Decree fosters industrial cluster development
06:00 | 07/05/2024 Policy
Decree regulates conditions for cars from abroad to Việt Nam
06:00 | 06/05/2024 Policy
Fresh policies come into effect in May 2024
06:00 | 03/05/2024 Policy
Employment Law to be revised for better assurance of employees’ interests
10:53 | 01/05/2024 Policy
IC development challenges Dong Nai Province
14:00 | 07/05/2024 Industry promotion
Textile and garment businesses face difficulties due to lack of domestic supply
05:00 | 07/05/2024 Industry
Automobile industry reported strong sales in Q1
06:00 | 05/05/2024 Industry
DPPA boots renewable energy, competitive electricity market
15:06 | 03/05/2024 Energy
Foreign, domestic investment in Ba Ria - Vung Tau rises sharply
09:22 | 07/05/2024 FDI
Foreign investors encouraged to invest in petroleum storage infrastructure
08:27 | 05/05/2024 Investment
Cambodian media values Vietnam's foreign investment attraction
09:50 | 03/05/2024 Investment
Thai Binh province rolls out red carpet for Dutch businesses
10:45 | 30/04/2024 FDI
MoF refuses to cut import tax for some materials of animal feed production
09:36 | 07/05/2024 Finance-Banking
Government proposes extending VAT cut until year end
09:10 | 05/05/2024 Finance-Banking
Stock market upgrade to help Vietnam lure another 10 bln USD in investment
09:23 | 03/05/2024 Stock Market
VND30-trillion credit package for forestry, fisheries businesses
06:00 | 30/04/2024 Finance-Banking
Is it possible to deny collection for waste unsorted at source?
06:00 | 07/05/2024 Environment
PM asks for effective preventive solutions against forest fires
06:00 | 05/05/2024 Environment
Heat records broken, more hot weather forecast for May
06:00 | 04/05/2024 Environment
Vietnam faces climate change challenges
06:00 | 02/05/2024 Environment
2024 VinFuture Prize records 1,469 nominations
06:00 | 07/05/2024 Science - Technology
HCM City: Centre for Fourth Industrial Revolution to debut in September
06:00 | 05/05/2024 Science - Technology
Vietnam’s digital products to go global
06:00 | 04/05/2024 Science - Technology
Digital transformation events for banking sector slated for May
06:00 | 03/05/2024 Science - Technology
Điện Biên Phủ Victory shows strength of intelligence, public consensus: Officer
06:00 | 07/05/2024 Society
HCM City works to put Metro Line No. 1 into operation soon
06:00 | 06/05/2024 Society
Online administrative procedures to be processed on one app only from July 1
08:49 | 04/05/2024 Society
Over 61,000 people visit President Ho Chi Minh mausoleum on national holidays
11:02 | 02/05/2024 Society
Habeco, northern beer Industry icon, reports largest quarterly loss in four years
06:00 | 07/05/2024 Vietnamese Brands
PV Gas unions launch book donation program
14:00 | 06/05/2024 Companies
Vietnam Airlines reports profit in H1
06:00 | 05/05/2024 Vietnamese Brands
Phenikaa targets to train over 8,000 semiconductor chip design engineers by 2030
06:00 | 04/05/2024 Vietnamese Brands
“The Road to Dien Bien Phu” full of emotion
14:59 | 07/05/2024 Lifestyle
Vietnamese celebrated director to head jury at Shanghai International Film Festival
06:00 | 07/05/2024 Lifestyle
HCM City launches international photo contest
06:00 | 05/05/2024 Lifestyle
Optimising UNESCO titles for national development
06:00 | 04/05/2024 Lifestyle
Green transformation in tourism starts with correct understanding, awareness: expert
06:00 | 07/05/2024 Tourism
7 places that are worth a visit in Điện Biên
06:00 | 05/05/2024 Tourism
HCM City achieves $127 million in tourism revenue over five-day holiday
06:00 | 04/05/2024 Tourism
Lang Son Geopark well-prepared for global recognition
06:00 | 03/05/2024 Tourism