Currently, PV Gas supplies three main product categories: Dry gas, liquefied petroleum gas (LPG) and condensate in the market. In addition, PV Gas has a product obtained from dry gas, namely compressed natural gas (CNG) at present, and will provide liquefied natural gas (LNG) in the future. PV Gas’ products are provided for different customers with their own particular usages.
Customers of Dry Gas
Gas from Southeast Fields and gas from Southwest Fields are processed at Dinh Co Gas Processing Plants and Ca Mau Gas Distribution Station, respectively, and are then transported by the pipeline system to customers. Currently, about 90% yield of dry gas is provided for power plants; 6% for Phu My Fertilizer Plant, and the rest is for industrial manufacturers via Phu My - My Xuan - Go Dau - Nhon Trach (Dong Nai) and Hiep Phuoc (Ho Chi Minh City) low-pressurized gas pipeline.
Customers of Liquefied Petroleum Gas (LPG)
PV Gas is wholeselling LPG mainly through its controlled subsidiary, PV Gas Trading Company. PV Gas Trading is responsible for consuming LPG from Dinh Co and from imported sources. In 2011, PV Gas Trading reached the target of nearly 60% domestic market share. PV Gas Trading is considered the leading trading unit in the wholesale market of LPG in Vietnam, with strong capacity for business and market share development in all three regions of Vietnam and begins participating in the regional market. The wholesale customers of PV Gas Trading are domestic LPG trading and distributing companies. LPG is delivered by tank trucks and tankers to the customer's storage.
LPG retailing business was transferred to their affiliates, PV Gas North and PV Gas South. These companies have developed their own retail networks through their agents and dealers to promote the brand of PetroVietnam Gas and other brands which PV Gas owns a number of shares. Currently, PV Gas North and PV Gas South are PV Gas affiliates holding the major retail market shares in the North and the South. Retailed LPG is sold in 12kg and 45kg gas cylinders to households and commercial consumers.
Besides, PV Gas has aimed at the LPG market for multistoried apartment buildings. Their tasks, including the development of market and market share and effectively trading of City Gas, have been appointed to PetroVietnam Gas City Investment and Development Joint Stock Company (PVGas City).
Customers of compressed natural gas (CNG)
CNG has been launched into the market since 2008. Inspite of a new product, CNG has been accepted by the market because of its competitive price compared to that of conventional fuels such as gasoline, oil and LPG. Customers of CNG are manufacturers of ceramic tiles, steel and porcelain... located far from PV Gas’ pipeline. In the future, CNG will aim to the Northern Market (Thai Binh,...), Central Market (Da Nang,...) on the basis of in-place gas resources. Currently, two affiliates in charge of CNG distribution and trading are Vietnam CNG JSC and PV Gas South Company.
In addition, CNG is also used in transportation industry to replace conventional fuels such as gasoline and oil. CNG is clean, environment - friendly fuel and is widely used in the world.
Customers of Liquefied Natural Gas (LNG)
LNG, a new product of PV Gas, is expected to be launched in 2015. PV Gas planned to produce and deliver LNG in two ways:
LNG Satellite: LNG is produced from domestic natural gas sources. It is then transported by tank trucks, tankers and barges to regasification stations or gas receiving facilities of customers. By this way, LNG output is only gathered at a limited volume as it is a pilot project. LNG satellite will be used mainly in transportation, and a minority will be used in the processing industry.
Imported LNG: According to the development plan in energy sector, Vietnam will have more new power plants using gas instead of conventional fuels such as coal and oil. The urgent demand is that there must be a certain gas volume to compensate the gas shortage in domestic market. In the first stage, LNG is expected to be imported by specialized carrier ships and regasified before delivery into gas pipelines in 2015 to supply consumers.
However, because the price of the imported LNG is much higher than the current domestic gas prices, it is hardly possible to supply regasified LNG for power plants under the roadmap of gradual gas price increase. Therefore, the target customers of LNG will be the consumers who can afford LNG price, including industrial manufacturers and new power plants (Hiep Phuoc, Son My...).
Customers of Condensate
Condensate is produced from the wet gas, taken form petroleum fields of Cuu Long basin and used to produce finished gasoline under a business co-operation contract between PV Gas and PV Oil. It partially contributes to ensuring stable supply to the domestic gasoline market.
Currently, due to the decline in gas production in Cuu Long basin, the volume of condensate produced in Dinh Co gas processing plant only limits about 60,000 tons per year. Besides, the plan to raise condensate price is being applied in order to reduce the difference between domestic condensate price and the regional and international prices in 2014.