(VOVworld) – Vietnam has quickly become a ‘Gas country’ on the world map. The sector now can meet the increasing domestic demand in industries, commerce, households, and transport.
After 23 years of foundation and development, PV Gas has created a synchronous infrastructure system (Photo: pvgas.com)
Over the past 50 years, the Vietnam National Oil and Gas Group has developed rapidly in all aspects becoming one of the country’s leading economic groups of which gas industry has made a major contribution. Its current turnover has exceeded 23.5 billion USD accounting for 23% of the whole nation’s GDP and contributing 30% to the state budget. In terms of the amount, the gas industry annually contributes about 10% of the entire group and to 2.5% of Vietnam’s GDP.
Since 1975, the first flow of gas detected in a well in the Dong Co commune of Tien Hai district, Thai Binh province has opened the way for successfully exploring the natural gas resources in Vietnam. Ha Van Tuan, Director of the Song Hong (Red River) Petroleum Company whose precursor is Tien Hai Gas Factory, said:
“Tien Hai district is considered the cradle of Vietnam’s oil and gas sector. During the 1970s in the last century, the exploration of Vietnam’s oil and gas was mainly conducted in Thai Binh province. The current gas supplies were detected in well 61 now considered as the Ancestor Well of the country’s petroleum industry. In 1981, the first commercial gas flow was explored to serve a power turbine in Tien Hai and merged into the national electricity grid.”
The idea of a complete Gas industry in Vietnam stemmed from the early 90’s, when associated gas from the Bach Ho Field if not brought onshore had to be burned offshore. This was not only wasteful but also had a great impact upon the environment and offshore oil production activities. In order to boost the development of the Gas industry, the General Department of Oil and Gas, now known as the Vietnam National Oil and Gas Group, decided to establish The Fuel Gas Company (now PV GAS), officially giving birth to the Gas industry in Vietnam. Phung Dinh Thuc, PetroVietnam President and CEO, said:
“The first explored ton of oil at White Tiger Oil Field in 1993 marked Vietnam’s first leap, helping it to become a crude oil producer and exporter to the world. The second breakthrough was in 1995 when Vietnam started to explore, transport, and set up a gas industry. Development has resulted in a series of other industries including the gas electricity industry, fertilizers, and liquefied gas substances. The third leap was the establishment of the Dung Quat Oil Refinery at the end of 2009 to produce processed oil to meet domestic consumption demand.”
After 23 years of foundation and development, at present, the oil and gas industry has created a synchronous infrastructure system ensuring sustainable development from gathering, transport, processing, and storage to distribution. Since May 1st 1995, when the first gas flow was brought onshore, PV GAS has supplied nearly 80 billion cubic meters of dry gas, gas as input fuel for the generation of 36 billion kwh of electricity per year (equal to 40% of national power generation output), as feedstock for producing 1.6 million tons of fertilizer per year (meeting 70% of the country demand for fertilizer), 100,000 tons of gasoline per year (representing 5% of domestic gasoline production output) and supplied about 1 million tons of LPG per year (over 70% of LPG consumption in the country).