PV GAS D: Asserting Leading Low Pressure Gas Distributor

PetroVietnam Low Pressure GAS Distribution Joint Stock Company (PV GAS D) was set up in 2007 with a registered capital of VND330 billion, of which PetroVietnam Gas Corporation (PV Gas) holds 18 percent of stake, PetroVietnam Southern Gas Joint Stock Company (PV Gas South) keeps 17 percent, and PetroVietnam Northern Gas Joint Stock Company (PV Gas North) has 15 percent. After four years of operation, the company’s charter capital has been raised to VND429 billion. PV GAS D was formed to meet the growing demand of industrial companies for natural gas in Vietnam and expand the low pressure gas distribution network nationwide to meet the market demand. Since its establishment, the low pressure gas business has been managed, perfected and developed by PV GAS D. The company has developed its completely synchronised gas production and business model from inputting, transportation to distribution.

 

The gas distribution system was built and developed with advanced technologies and modern equipment imported from G7 industrialised countries. The entire system was synchronously designed and installed with a high degree of flexibility based on foreign advanced standard platforms like ASME B31.8, ASME B 31.3, API RP 520 and NFPA 10. After more than four years of operation, PV GAS D has maintained high annual growth rate of over 45 percent. The company has positively contributed to the national development, to the national industrialisation and modernisation and paid taxes of VND90 - 100 billion a year.

 

Typical of advanced technology and strict safety and fire prevention requirements, the company always puts safety issues on top. The firm has deployed the integrated safety, quality and environment management system in accordance with such standards as ISO 9001: 2008, ISO 14001:2004, OHSAS 18001:2007 (Occupational Health and Safety Advisory Services) and has been certified TUV Vietnam. Currently, PV GAS D is still updating and maintaining this integrated safety quality environment management system.

 

Therefore, the gas supply system for customers is always safe and stable. It is regularly maintained and checked for safety. Incidents are timely treated to keep the suspension time shortest. Many technical innovations and management improvements have been introduced to boost output, sales, profits and taxes, to guarantee product quality, and better spiritual and material life of employees. Specifically, the company’s output was only 136.5 million cubic metres in 2007, it soared to 460 million cubic metres in 2010 and 401 million cubic metres in the first nine months of 2011. On the same move, pre-tax profit climbed from VND89 billion in 2007 to over VND289 billion in 2010 and VND341 billion in the first nine months of 2011.

 

To become a leading gas supplier for industrial companies and industrial parks in Vietnam, PV Gas has constructed the low pressure gas distribution system in Nhon Trach Industrial Park (Dong Nai province) and Hiep Phuoc area (Ho Chi Minh City). In July 2010, PV Gas D started construction on the system in Nhon Trach Industrial Park and began the building on the system in Hiep Phuoc in January 2011. After 15 months of construction, the project in Nhon Trach has basically completed 95 percent of construction work while the work in Hiep Phuoc has also completed 85 percent. Main pipelines have been installed and expected to be put into operation in November 2011. Once the two gas systems in Nhon Trach and Hiep Phuoc are completed and operated, the company’s gas supply will increase by 116 million standard cubic metres (sm3) a year, equivalent to 22.31 percent of its total gas supply in 2011, and bring the total gas supply to some 700 million sm3 a year. In addition, PV GAS D continues to expand its gas supply network in Phu My, My Xuan and Go Dau industrial parks (Ba Ria - Vung Tau province) and considers investing in gas distribution systems in industrial zones in Can Tho, central region and north region.

 

PV Gas D is forecast to face more difficulties and challenges in the coming time because of economic instability and difficulties of the gas industry. Nonetheless, based on growth momentums, advantages, prestige, strengths in products, markets, distribution systems, technology and efforts of the entire employees, PV Gas D is confident to live through all difficulties and challenges to assert its name on the market. With the goal of building PV D GAS into a strong joint stock company that plays a key role in low pressure gas supply in Vietnam, in the five-year development plan from 2011 to 2015, PV GAS D will continue to increase investments for expansion of existing low pressure gas distribution systems in Ba Ria - Vung Tau and Dong Nai provinces and for construction of new ones in Binh Duong, Ho Chi Minh City, Can Tho and other localities. In the north, the company will give first priority to industrial parks in Thai Binh province.

 

General Director Nguyen Van Son said the PV GAS is actively carrying out the LNG import project. PV GAS is expected to start importing 1 million tonnes of LNG in late 2014 and the volume will then increase to 3 - 5 million tonnes a year. In the near term, LNG will be distributed in the Southeast region where the gas supply system is relatively complete. PV GAS assigned PV GAS D to continue conducting LNG market surveys in industrial parks in Binh Duong province to prepare the best conditions for the first supply of LNG in 2014. The company has now completed detailed survey in Song Than 1, Song Than 2, VSIP 1, VSIP 2, expanded VSIP. It will invest in LPG supply systems for industrial parks in Binh Duong province in 2012.