Vietnam's First LNG Train: A Game-Changer for the Gas Industry

On 6 September 2024, Petrovietnam Gas Corp. (PV GAS) made history by launching the first train carrying liquefied natural gas (LNG) from the south to the north of Vietnam. This landmark event marks a significant milestone in the country's energy sector, as it signifies PV GAS' commitment to meeting the increasing demand for LNG, particularly in the north, while bolstering the nation's energy security and sustainable development.

A Multi-Modal Solution to Meet Growing Energy Demands

Recognising the pressing energy needs in northern Vietnam, especially amidst the ongoing development of its LNG import infrastructure, PV GAS has strategically implemented a multi-modal LNG transport solution that combines road and rail transportation. This innovative approach ensures the delivery of LNG to regions that are geographically distant from PV GAS' existing infrastructure, effectively expanding the corporation's reach and access to new markets.

The departure of the train, carrying 16 ISO tanks of LNG maintained at a temperature of -162°C throughout its journey, underscores the completion of a comprehensive energy supply chain by PV GAS. This integrated system leverages pipelines, waterways, roadways, and now railways, creating a flexible and efficient network that spans the entirety of Vietnam.

Leading the Energy Market Towards Sustainability

Beyond simply expanding its supply map and refining energy solutions for customers, PV GAS's innovative rail/tanker truck business operations contribute to the advancement of clean energy. By choosing LNG as the primary source of energy, PV GAS plays a crucial role in reducing carbon dioxide emissions, achieving a 30% reduction compared to coal and a 40% reduction compared to oil. This commitment to sustainability positions PV GAS and its parent company, Petrovietnam, as leaders in the energy market, driving the gas industry towards a greener and more sustainable future.

A Spirit of Innovation and Breakthrough

Nguyen Phuc Tue, Vice President of PV GAS, highlighted the dedication and hard work that went into making this historic first LNG train journey a reality. He emphasized the spirit of innovation, creativity, and breakthrough that characterized the PV GAS team, ultimately leading to this significant achievement. Tue further expressed optimism about the numerous opportunities and growth prospects this new venture will unlock for both the corporation and its units in the future.

Collaborating for a New Chapter in Vietnam's Gas Industry

Phan Quoc Anh, Vice President of Vietnam Railways (VNR), underscored the crucial role of collaboration and partnership in successfully implementing this new business model. He praised the proactive support provided by PV GAS's partners, which has paved the way for a new chapter in both Vietnam's railway transport and gas industry. To ensure timely delivery, the LNG train will be given priority, with an expected transit time of three days to the northern region.

The Future of LNG in Vietnam

The successful launch of Vietnam's first LNG train marks a pivotal moment in the country's gas industry. PV GAS's strategic implementation of a multi-modal transportation solution, combined with its commitment to sustainable energy practices, signifies a shift towards a more efficient, reliable, and environmentally friendly energy sector. As Vietnam continues to advance its industrial and economic development, PV GAS's innovative LNG transportation initiative is poised to play a critical role in meeting the nation's growing energy demands and securing a brighter future for all.

A New Era of Energy Supply

The introduction of LNG rail transportation represents a significant advancement in PV GAS's integrated energy business model. This new method of transporting LNG is not only an innovative solution but also a critical step towards ensuring a stable and reliable supply of energy to all regions of Vietnam. PV GAS's commitment to developing and diversifying its product offerings, including pipeline gas, LPG, CNG, and now LNG, underscores its dedication to meeting the diverse energy demands of the market. This strategy will undoubtedly boost PV GAS's competitiveness and secure its position as a leading energy provider in Vietnam.

A Promising Future for LNG in Vietnam and Beyond

With the ongoing rise in energy market fluctuations, PV GAS's shift towards an integrated energy business model aligns perfectly with the global energy transition trends. The increasing use of various gas products as fuel, including LNG, reflects a growing awareness of the need for cleaner and more sustainable energy sources. PV GAS recognises the immense potential of LNG, both in Vietnam and the Asia-Pacific region, where demand for the fuel is steadily increasing.

This transition, marked by the introduction of LNG as a new product and railway transportation as a new delivery method, is anticipated to solidify PV GAS's position as a leading player in Vietnam's gas industry. It will also open up exciting new development opportunities for the company in the years to come. PV GAS's significant investments in LNG infrastructure in Vietnam, including the Thi Vai LNG terminal, demonstrate its long-term commitment to this critical energy source.

This commitment to LNG and its innovative approach to transportation are poised to not only strengthen PV GAS's position in the energy market but also contribute to the advancement of clean energy in Vietnam and beyond. As the nation strives for a sustainable and prosperous future, PV GAS's pioneering efforts in LNG transportation serve as a model for other countries seeking to transition to a cleaner and more secure energy future.