Liquefied Petroleum Gas (LPG)
Liquefied petroleum gases (LPG) is a group of hydrocarbon gases, primarily propane, normal butane, and isobutane, derived from crude oil refining or natural gas processing. These gases may be marketed individually or mixed. They can be liquefied through pressurization (without requiring cryogenic refrigeration) for convenience of transportation or storage. LPG has many industrial as well as domestic uses:
1) The top most use of LPG is to use as the main fuel for vehicles. It burns better than diesel or petrol and hence, the top most use for LPG is to use it as ignition fuel. It is also more energy efficient and is said to leave lesser damaging impact on the atmosphere and the environment.
2) LPG is also popularly used as a refrigerant. Since butane and propane are both considered to be energy efficient, LPG serves as a great hydrocarbon.
3) LPG is also used as a chemical feedstock.
4) LPG is also used for agricultural purposes in drying processes.
5) As a great industrial fuel, LPG is also used in solution heating processes.
6) The other main use of LPG is as domestic fuel or what we know as cooking fuel.
7) The paper industry as well as the food processing industry is also one of the top most industries which rely heavily on LPG. It has also a major role in the plastic industry and is even used in making explosives.
8) LPG is also used to produce electrical energy by running turbines.
Petro Vietnam Gas Corporation (PVGAS) is not only the Vietnam's largest Liquefied Petroleum Gas supplier but also is the dominant player of the market. The growth of the market and the company milestones have a very strong relationship.
LPG was introduced to Vietnam since early 1990s. The initial Vietnam LPG market size is just about 50,000 tons, mainly imported and using in the household area. The PVGAS' launch of the Dinh Co Gas Processing Plant, which produce about 300,000 tons per year at that time, accelerated the consumption. LPG now becomes popular and be used vary from cooking to industrial production. For over twenty year, with the favor of the emerging economy, the demand grow steadily. The current LPG market size is about 1.3 million tons per year.
Apart from local production, at present, half of the market demand must be fulfilled with imported LPG. Pressurized cargoes used to be the only mean to import LPG till PVGAS adapted a 44,000 -ton-refrigerated vessel for floating storage in 2007. The company was the pioneer in importing refrigerated cargoes. In oder to secure long-term stability for market supply, PVGAS then invested and launched a 60,000-ton-refrigerated storage in 2013. Up to date, it is the only cold storage of Vietnam. Precisely, the infrastructure of PVGAS positions the company as the sole ability to import cold LPG in Vietnam.
The distribution network of PVGAS spreads throughout Vietnam, master both in wholesales and in retailing. Implementing the customer-dominant business strategy, the company provides the customers quality, flexibility, safety and stability commitment. The domestic market share is about 70 percent and expected to increase in coming time thank to the new production projects. Not only putting concentration on local market, PVGAS is becoming a global entity. The company has exported LPG to many countries as well as conducted international trading operations.
With the vision in steady growth of the market scale, PVGAS is raising investment in new gas production projects. The Camau GPP, located in Ca Mau Province, will be for operation in 2017. The initial volume at 200,000 tons per year will increase to 420,000 every year in the period of 2020 and 2030. Another gas plant of PVGAS is the Nam Con Son 2, for operation in 2020. The plant's volume will be 300,000 tons initially and may increase to 500,000 tons over the period to 2030. In nearby future, together with the current production of Dinh Co GPP, PVGAS can produce and supply about 700,000 tons every year to the market, maintaining its premier position in the Vietnam LPG market.