Petrovietnam arm, Germany's Messer to build $37 mln industrial gas plant in southern Vietnam

Petrochemical and Services Corporation (PVChem), a subsidiary of state-owned Petrovietnam, has signed an agreement with Germany’s Messer SE & Co. KGaA to form a joint venture to develop a $37 million industrial gas plant in southern Vietnam.

Under the agreement signed on Tuesday, the new entity, Cai Mep Industrial Gas Co. Ltd., will build a gas production facility at Cai Mep Industrial Park in the former Ba Ria-Vung Tau province, now part of Ho Chi Minh City.

The project will have a designed capacity of 200,000 tons per year, with construction expected to begin in late 2026 and commercial operations targeted by end-2028.

The plant will operate on a green and circular economy model, using cold energy recovered from PV Gas’s LNG storage system to support deep-cooling processes in air separation.

It will integrate European cryogenic air separation (CAS) technology and LNG regasification cold energy recovery, enhancing energy efficiency and cutting emissions.

Messer, the world’s largest privately owned industrial and medical gas producer, operates in more than 60 countries/territories and has been present in Vietnam since 1997, with plants in Hai Phong, Thai Nguyen, Quang Ngai, Binh Duong, and Tay Ninh. It is among Germany’s biggest investors in Vietnam.

Petrovietnam chairman Le Manh Hung said the joint venture marks a concrete step in implementing the group’s green energy and circular economy strategy, in line with Vietnam’s net-zero carbon commitments.

Messer chairman Stefan Messer described the project as a key opportunity to help Vietnamese industries cut carbon emissions through the use of low-emission industrial gases, essential for sectors such as manufacturing and healthcare.

PVChem reported consolidated revenue of VND3.92 trillion ($148.81 million) in the first 10 months of this year, up 78% year-on-year and 40% above its full-year target. Pre-tax profit reached VND48.23 billion ($18.33 million), exceeding the plan by 10%.

The company expects 2025 with revenue of VND4.2 trillion ($159.61 million) and pre-tax profit of VND49 billion ($1.86 million), surpassing its targets by 50% and 11%, respectively.