PV Gas launches first LNG train on south-north railway route

PV Gas officially inaugurated its first liquefied natural gas (LNG) train shipment from the south to the north of the country on Friday, marking a milestone in Vietnam’s gas industry.

The firm said in a release that after a journey of nearly 2,000 kilometers, the train carrying 16 ISO tanks with LNG will reach Dong Anh station in Hanoi. From there, it will be transported by specialized tankers to industrial consumers in the northern region.

In response to the great energy needs for industrial production in the north and the incomplete LNG import infrastructure there, PV Gas moved swiftly to implement a multimodal transportation solution combining rail and road transport to deliver LNG to regions far from its existing energy facilities, the release said.

The launch of the train carrying 16 ISO tanks with LNG at -162 degrees Celsius was an achievement in completing PV Gas’s energy supply chain through pipeline, waterway, road, and railway, it added.

“This offers a flexible and extensive energy supply network across Vietnam and paves the way for PV Gas to develop diverse, competitive and adaptable energy services, thus meeting growing energy demands and supporting economic and social development.”

The new rail and road tanker LNG service extends PV Gas’s supply network to areas with poor infrastructure and enhances its LNG energy solutions. It also supports the development of clean LNG energy, which reduces CO2 emissions by 30% compared to coal and 40% compared to oil.

With this initiative, PV Gas and its parent company Petrovietnam are leading the competitive energy market in general and the gas industry in particular towards clean and sustainable energy solutions, the release said.

Speaking at the inauguration ceremony, Nguyen Phuc Tue, deputy CEO of PV Gas, said the launch of the first LNG train from the south to the north reflected the company’s collective intellect, dedication, determination and relentless endeavor. It embodied innovation, creativity and breakthrough mindset of the company team involved in this project.

“This milestone will open up new opportunities for growth for PV Gas and its subsidiaries,” he said.

Phan Quoc Anh, deputy CEO of state-owned Vietnam Railways (VNR), pledged strong support and system-wide collaboration from VNR and its partners for the new PV Gas business model.

Top priority will be accorded to ensuring a smooth run along the entire route, Anh said.

The first LNG train is expected to reach its northern destination in three days.

PV Gas earned a consolidated net profit of VND5,832 billion ($231.3 million) in the first half of this year, down 10.3% year-on-year, due to rising management costs. However, the six-month performance exceeded the firm’s 2024 net profit target by 2.8%. It earned H1 revenues of VND53,367 billion ($2.12 billion), up 17.92% year-on-year, fulfilling 76% of the annual target, according to its quarterly financial statement.

PV Gas, listed on the Ho Chi Minh Stock Exchange as GAS, closed at VND84,100 ($3.42) apiece on Friday.