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PETRO VIETNAM GAS JOINT STOCK CORPORATION

PETRO VIETNAM GAS JOINT STOCK CORPORATION


Project Description
  • 0
  • 19/07/2018

OVERVIEW

PetroVietnam Gas Joint Stock Corporation (PV Gas), formerly known as Fuel Company, was established in 1990. The Corporation has its main busienss in gathering, importing, transporting, storing, processing and trading of gas and gas products. PV Gas is the only company that has full gas infrastructure including gas gathering systems at sources, pipeline for transportation and distribution, storage system, gas processing plant with 3 gas pipeline systems: Cuu Long, Nam Con Son in the Southeast region, PM3 in the Southwest region and two gas processing plants: Dinh Co, Nam Con Son in the Southeast region and a LPG storage system nationwide. PV Gas has a total capacity of 450,000 – 500,000 tons of LPG per year and 70,000 ton of condensate per year. The Corporation maintains its leading position in LPG supply with more than 70% of the LPG marketshare in Vietnam. PV Gas has been listed on Hochiminh Stock Exchange (HOSE) since 2012.

MAIN BUSINESS

  • PV GAS’ main activities are gathering, transporting, processing, storing, distributing and trading of gas and gas products in Vietnam. Its key products include liquidity petroleum gas (LPG), compressed natural gas (CNG),  liquefied natural gas (LNG), dry gas and consensate;

  • Investment in infrastructure, distribution system dry gas, liquid gas;

    Consumption of all LPG produced in the domestic refineries and other sources of national Petro Vietnam (PVN);

  • Providing services in gas and gas products transportation, gas operating projects, supply of steel pipe and casing pipe.

MARKET POSITION

  • As a subsidiary of PetroVietnam, PV Gas has privileged access to all gas fields in which PetroVietnam has a stake and based in Vietnamese waters. It is the only company that has full gas infrastructure including gas gathering systems at sources, pipeline for transportation and distribution, storage system, gas processing plant.

  • PV Gas has a total capacity of 450,000 – 500,000 tons of LPG per year and 70,000 ton of condensate per year.

  • The Corporation maintains its leading position in LPG supply with more than 70% of the LPG marketshare in Vietnam.

  • PV Gas has already a wholesale network with nearly 50 domestic clients and over 10 oversea ones, and a retail network with more than 2,000 general agents/agents.

GROWTH STRATEGY

  • Maintaining the leading role in the gas industry in Vietnam, to participate in the international gas market, to connecting with Trans – Asian gas pipelines and become one of the strongest gas brands in the ASEAN and Asia;

  • Maintaining its leading position in LPG supply with at least 70% of the LPG marketshare in Vietnam, including 50% of wholesale marketshare and 27% of retail marketshare;

  • Developing LPG retail distribution network in neigboring countries e.g. Laos, Cambodia;

PROSPECTIVES

  • As a member of PetrolVietnam Group, the Corporation has a favorable condition to access all gas fields in which PetroVietnam has a stake and based in Vietnamese waters.

  • It is the only enterprise that has an intensive gas infrastructure including gas gathering systems at sources, pipeline for transportation and distribution, storage system, gas processing plant.

  • Domestic demand for natural gas and gas products is growing fast;

  • New gas fields are continuously being developed and put into production, increasing gas supply.

  • The Corporation has long experience in the gas industry with loyal customers and it can enjoy some economies of scales.

RISK

  • Prices of all gas products are highly correlated with oil prices, therefore significant changes in crude oil prices will impact PV Gas’ bottom line.

  • Existing gas sources are located either Southeast or Southwest of the Mekong Delta but there’s no pipeline network interconnecting the two regions to better manage gas flow and usages.

  • Current gas fields are scattered offshore with small reserves so that production cost and transportation cost are high.