Converting Vehicles to CNG – Vietnam Oil and Gas Sector Commits to Environmental Protection | GAS SOUTH

This is considered a pioneering initiative to call for social engagement and replicate a model that brings many practical benefits…

On November 16, 2010, in Vung Tau City, the Vietnam National Oil and Gas Group (PVN), PetroVietnam Gas Joint Stock Corporation (PV Gas), and PetroVietnam Southern Gas JSC (PV Gas South) held the inauguration ceremony of the CNG filling station at the company’s land on Nguyen An Ninh Street, Ward 9, with a capacity of 1,800 Nm³/h.

Together with Resolution No. 2958/NQ-DKVN issued in May 2010, the oil and gas industry once again affirmed its strong determination to pioneer the conversion of vehicles to run on compressed natural gas (CNG), in an effort to limit environmental pollution.

As known, CNG (Compressed Natural Gas) is mainly methane (CH₄), taken from natural gas fields, processed and compressed at high pressure (250 atm) for storage. Since it does not contain benzene or accompanying hydrocarbons, CNG combustion releases far fewer toxic gases such as NO₂ and CO, and almost no dust. Globally, CNG is widely used as a substitute for gasoline due to these advantages. It is more dispersible and does not accumulate like gasoline or LPG. If leaked into the atmosphere, its fire hazard is less than half of gasoline, significantly reducing explosion risks.

CNG technology first appeared in Vietnam with the establishment of the CNG plant at Phu My I Industrial Park, Tan Thanh District, Ba Ria – Vung Tau Province, which began operations in late August 2008. In May 2010, aiming to reduce environmental pollution and combat climate change, PVN issued Resolution No. 2958/NQ-DKVN, approving the conversion of all company vehicles in Ho Chi Minh City and Ba Ria – Vung Tau (around 600 vehicles) to run on CNG.

PVN assigned PV Gas and PV Gas South to prepare and submit conversion plans for member units’ vehicles, and to promptly invest in CNG conversion kits, filling stations, and distribution systems, ensuring safety, convenience, and cost-effectiveness for users.
Immediately after the issuance of Resolution 2958/NQ-DKVN, PV Gas South initiated the research project “Application of technology to convert gasoline engines to operate on compressed natural gas – CNG,” led by Dr. Nguyen Si Thang, Chairman of PV Gas South. The company also called on enterprises in the sector to coordinate efforts and fulfill the Group’s directive, aiming to promote widespread use of CNG-fueled vehicles across the sector and society.

As of now, approximately one-third of the targeted vehicles have been converted to use CNG.

Mr. Doan Van Nhuom, General Director of PV Gas South, stated that CNG conversion is essential as it significantly reduces fuel costs (by 30–50%), minimizes environmental pollution, and supports PVN’s policy of enhancing internal resources and promoting cooperation with Ho Chi Minh City and Ba Ria – Vung Tau.

Moreover, CNG is currently cheaper than gasoline and LPG, making it a suitable fuel for urban services and industrial zones, especially amid rising fuel prices in recent years. Experts have assessed the CNG market as highly promising, offering both economic returns and reputation for the oil and gas sector in environmental protection.

According to Mr. Nhuom, PV Gas South has invested in one mother CNG compression station at My Xuan A Industrial Park with a capacity of 70 million m³/year. CNG Vietnam JSC (a PV Gas South affiliate) also operates a mother station with a capacity of 30 million m³/year, expected to expand to 50 million m³/year.

PV Gas South currently operates one daughter station at 2 Pho Quang Street, Tan Binh District, Ho Chi Minh City, capable of serving around 400 vehicles/day, meeting the needs of units in the area.

For transport, PV Gas South has invested in 26 CNG transport vehicles, each with a capacity of 4,250 Nm³. The company has converted all of its vehicles to CNG. In Vung Tau, PV Gas South has built a daughter station on its property on Nguyen An Ninh Street, Ward 9, capable of serving 50 vehicles/hour (around 800 vehicles/day).

To further facilitate CNG usage, the company is installing an additional station on Nguyen Huu Canh Street, Binh Thanh District, HCMC, with a capacity of 400 vehicles/day, expected to be operational in early December 2010. A new daughter station is also planned along National Highway 51 in My Xuan Commune, Tan Thanh District, Ba Ria – Vung Tau, expected to open in Q1 2011.

With this capacity, PV Gas South is calling on sector enterprises to join efforts in implementing Resolution 2958/NQ-DKVN, fulfilling the Group’s directive and promoting the conversion of vehicles to run on CNG.

Clearly, CNG has great potential in Vietnam’s transportation and industrial sectors. The trend toward clean and economical fuels will undoubtedly grow stronger in the near future. PV Gas and PV Gas South are actively preparing plans to ensure timely CNG supply and contribute to the global movement for a cleaner environment.