According to the IEA, in the global energy consumption structure, the share of gas currently accounts for 23.9% and is rapidly increasing at an average rate of about 3.1% per year, expected to reach 30% of total global energy demand by 2020.
For Vietnam, according to recent research, the total recoverable natural gas potential is estimated at around 2.4–3.0 trillion cubic meters, mainly concentrated in the Nam Con Son, Malay–Tho Chu, Cuu Long, and Song Hong basins.
The idea of a complete gas industry in Vietnam was formed in the early 1990s, when associated gas from the Bach Ho oil field, if not brought onshore for utilization, would have to be flared offshore, which was not only wasteful but also affected offshore oil production operations.
The project to utilize associated gas from the Bach Ho field was studied from this point, and to accelerate the development of the gas industry, on September 20, 1990, the Gas Company (now PetroVietnam Gas Corporation – PV Gas) was established, officially marking the birth of the gas industry. With the main functions of collecting, transporting, processing, and trading gas products, PV Gas is now the only unit of PetroVietnam responsible for tasks in the gas sector.
In fact, after 20 years of establishment and development, the gas industry has built a relatively synchronous infrastructure to ensure sustainable development in collection, transportation, processing, storage, and distribution.
Accordingly, in terms of collection: the total gas volume collected from fields (Bach Ho, Rang Dong, Phuong Dong, Lan Tay, Lan Do, Ca Ngu Vang, Su Tu Den, Rong Doi, PM3 & 46 Cai Nuoc) brought ashore supplies over 8 billion cubic meters per year to consumers. In terms of processing, storage, and distribution, there are currently 2 gas processing plants in Dinh Co, Ba Ria–Vung Tau, nearly 900 km of high-pressure gas pipelines supplying the Southeastern and Southwestern regions, and an LPG storage system with a capacity of nearly 20,000 tons.
In addition, the gas industry has established a distribution network reaching end-users with nearly 100 km of low-pressure gas pipelines in industrial parks, along with extensive LPG stations and dealers nationwide.
It can be said that with relatively synchronous and complete facilities, the gas industry is currently supplying feed gas for the production of 36 billion kWh of electricity per year, equivalent to 40% of national power output, nearly 800,000 tons of urea per year, equivalent to 30% of the country’s total fertilizer output, 100,000 tons of gasoline per year, equivalent to 5% of domestic gasoline production, and about 700,000 tons of LPG per year, meeting nearly 70% of national LPG demand, thereby contributing to ensuring energy security, food security, and stable LPG supply for the domestic market while helping stabilize LPG prices.
Speaking to the press, the leadership of PV Gas – the key unit of the gas industry – stated that the development policy of the gas industry is to move toward acceleration and breakthroughs, ensuring safety, quality, efficiency, and sustainability with the most advanced technologies, thereby contributing to national energy security and ensuring a stable, long-term supply of gas and gas products.
In this, safety and efficiency are the guiding principles throughout the development process. The goal is to develop the gas industry into an important technical-economic sector, meeting market demand by increasing the value of domestic gas resources, while leveraging supplies from regional and global sources.
At the same time, to position Vietnam’s gas industry as a recognized brand in the region and the world. Development will follow the direction of product diversification, strengthening deep processing to enhance the value of gas, maximizing internal resources, and increasing cooperation with domestic and international partners.
According to PV Gas leadership, the general objective for gas industry development is strong, safe, high-quality, efficient, and modern growth, with complete operations in all stages: collection, transportation, processing, storage, trading, services, and import–export; diversification of gas and gas products; intensifying the search for additional supply both domestically and abroad; promoting product diversification with special focus on developing deep-processing projects to increase gas value; and making Vietnam’s gas industry an important technical-economic sector in the national economy.
During 2011–2015, the industry aims for revenue growth of 18–20% per year. Revenue structure: gas accounts for 61%, gas products for 17%, and services for 22%. The establishment and development of PV Gas is intrinsically linked with the gas industry.
PV Gas continues to be the only unit of PetroVietnam responsible for gas-related tasks. Therefore, PV Gas plays a vital role in the industry. Every activity of PV Gas is also that of the industry, and any change in PV Gas will affect the entire gas sector.
According to forecasts by the Institute of Strategic Studies, Vietnam’s total energy demand will reach about 65–72 million tons of oil equivalent (TOE) in 2015 and 97–123 million TOE in 2025. In terms of consumption structure, the use of clean fuels to reduce environmental impact, such as natural gas and LPG, will increase rapidly.
In Vietnam as well as globally, gas consumers are mainly power plants, with gas demand from power plants typically accounting for 70–80% of total gas demand.
According to Vietnam’s power development plan, from 2011 onward, with domestic gas production, Vietnam will face an annual shortfall of 1–2 billion cubic meters during 2011–2015, with shortages increasing after 2015.
Since 1990, when LPG began to be widely used in Vietnam, LPG demand has grown strongly, averaging nearly 30% per year. Although the growth rate has slowed since 2001 after 10 years of market penetration, forecasts indicate that during 2011–2015, it will remain at 7–8% per year and then stabilize at about 5% (excluding petrochemical demand).
In addition, along with the development of the refining and petrochemical industries and the multi-sector, multi-business development strategy of PetroVietnam and PV Gas, oriented toward processing to enhance gas value, petrochemical plants using liquid products processed from natural gas and associated gas will soon come into operation, starting with the Long Son Petrochemical Complex expected to operate from 2014. Accordingly, total LPG demand for petrochemicals by 2015 will be at least 2.2 million tons.
(Saigon Giai Phong, 13/7, page A)
