PV GAS honored among the outstanding, leading units of Petrovietnam: Prime Minister Pham Minh Chinh and Petrovietnam leadership congratulate outstanding units of Petrovietnam in 2024

Success from governance and business model innovation

In 2024, PV GAS faced multiple difficulties and disadvantages, including a sharper-than-expected decline in domestic gas supply and gas consumption for power production, intense competition from rivals and alternative energy sources, and incomplete regulatory frameworks for the gas/LNG sector. However, with the motto of “introducing new drivers, refreshing old ones,” and through pro-active, decisive, and innovative governance, PV GAS exceeded its business performance targets in 2024, establishing numerous milestones and records.

In terms of output, PV GAS surpassed its planned targets for all indicators. Notably, LPG sales reached a record volume of nearly 3.1 million tonnes, 166% of the plan, a 25% increase compared to 2023, accounting for 70% of the domestic LPG market. International LPG sales reached nearly 1.5 million tonnes, the highest ever, marking a 68% increase compared to 2023.

The implementation of “introducing new drivers and refreshing old ones” motto has contributed nearly VND30 trillion to PV GAS’s revenue in 2024

For financial indicators, PV GAS exceeded its targets by 50-82% across the board, with revenue and profit setting new records and achieving significant growth compared to 2023. Specifically, the corporation’s total revenue reached nearly VND130 trillion, a 10% increase over 2023, equivalent to nearly 13% of Petrovietnam’s total revenue. Consolidated revenue hit nearly VND105 trillion, 150% of the plan, with a 14% growth compared to 2023. Pre-tax profit exceeded VND13 trillion, 182% of the plan, contributing nearly 25% to Petrovietnam’s total profit, while tax payment amounted to over VND6 trillion, 161% of the plan. Construction investment disbursement reached nearly VND2 trillion, achieving 101% of the target.

These exceptional results, achieved amid a decline in traditional drivers, reflect PV GAS’s tremendous effort to transform and harness new drivers effectively. For instance, in 2024, PV GAS imported and supplied 400 million cubic meters of LNG to power customers during the peak dry season and for commissioning the Nhon Trach 3 Power Plant project. This marked the first time imported LNG was supplied for electricity production in Vietnam. The corporation successfully delivered LNG to northern Vietnam via rail and tank trucks starting September 2024, completing a comprehensive gas energy supply chain across pipelines, waterways, roads, and railways.

PV GAS is transitioning from focusing on production and distribution to becoming an integrated energy solutions provider

Additionally, PV GAS successfully executed its first international LNG trading transaction, with a volume of over 70,000 tonnes, officially entering the global LNG trading market.

The implementation of “introducing new drivers, refreshing old ones,” contributed nearly VND30 trillion to PV GAS’s revenue (VND5 trillion from LNG sales, and nearly VND25 trillion from LPG and international LNG business). These are remarkable results and achievements in pioneering fields, with new products and innovative business models serving as proof of the determination to create new momentum for business and production activities.

The accomplishments of PV GAS employees in 2024 clearly demonstrate the success of its business model transformation and governance improvements. Transitioning from its previous operational model, PV GAS is evolving from a focus on production and distribution to becoming an integrated energy solution provider. This involves expanding its business-trading activities, reaching non-traditional customer segments, and stepping into the international market.

At the same time, PV GAS has reinforced internal governance, ensuring adherence to Party, State, and corporate directives, while fostering a workforce that embodies responsibility, innovation, and accountability.

PV GAS focuses on building and maintaining a workforce that is willing to speak up, take action, and be responsible

2025 “the year of market development”

In 2025, it is forecast that traditional drivers of PV GAS’s growth will continue to decline significantly, including the domestic gas supply and the unstable mobilization of gas for production. Meanwhile, new drivers such as new gas sources are not yet ready, and mechanisms and policies for developing the gas industry in the new phase are still being finalized. Additionally, the growth targets set by the Party and the Government for the upcoming period are highly challenging. However, PV GAS views this new context not only as a challenge, but also as an opportunity for development.

To overcome these challenges and seize opportunities, PV GAS is committed to proactively “staying one step ahead” in preparing infrastructure, ready to actively participate in the arrangement of energy supply/solutions to meet the country’s development needs. PV GAS will continue to closely follow the National Power Development Plan VIII, the policy on nuclear power plant construction, Conclusion No.76-KL/TW of the Politburo, market demand forecasts, and efficiently implement gas infrastructure development projects, especially in the LNG sector.

At the same time, PV GAS will continue to strengthen gas distribution and sales, optimize the capacity of existing infrastructure, improve governance, and proactively work with authorities and consumers to resolve bottlenecks in gas/LNG policies, particularly those related to LNG sales for electricity production.

Market development is the key focus for 2025

Market development will be the key focus in 2025. PV GAS will continue to promote the development of the gas and LNG consumption markets, international business activities, and supply of gas as material. The corporation will also continue to explore, develop, and introduce new drivers and products, finalize the construction of medium- and long-term development strategies suitable for the new situation, and restructure its internal operations and workforce to align with trends and development orientations.

With a determination to turn the challenges of the new phase into opportunities for breakthrough development, PV GAS’s leadership and employees are committed to uniting their efforts, optimizing existing resources, mobilizing new ones, transforming words into actions, and achieving results. The foundation will be built on production and safety, with business activities and market development being the key focus. In a rapidly changing global energy sector, PV GAS has set 2025 as “the year of market development.”

Helping Petrovietnam – the National Energy and Industrial Group – develop into a leading regional and global energy industry brand, PV GAS reaffirms its determination in leading the development of a competitive energy market. It will continue to develop core competencies, create outstanding business models and products, contribute to ensuring energy security, food security, and national economic security, strengthen international market operations, and pioneer the promotion of sustainable energy solutions to serve the country’s economic growth in the nation’s “Rising Era.”