State-owned giant Petrovietnam seeks to develop eco-energy, industrial center

Petrovietnam is studying a large-scale eco-energy and industrial center project in the country which will be a vital driving force of the group's future development and "a matter of survival", said chairman Le Manh Hung.

"Developing a large-scale, integrated ecological energy and industrial center is an urgent and strategic task," Hung said Wednesday on Petrovietnam's website.

This is not only a requirement from the reality of energy transition, but also a practical solution for Petrovietnam to create new growth momentum, in line with the development trend of the global energy industry, he added.

The center model will be built on principles of sustainability, circular economy and industrial symbiosis, with an aim to maximize the value chain and enhance competitiveness.

The ecological energy and industrial center includes three main components. First, the energy component includes diverse energy supply and production facilities, from traditional energy (gas, LNG) to new energy and renewable energy (offshore wind power, green hydrogen/ammonia), which will be connected by modern shared infrastructure.

Second, the industrial segment includes supporting and deep processing industrial clusters which will develop largely based on domestic energy and raw materials. The clusters include facilities rated to petrochemicals and refining, chemicals, manufacturing of energy equipment, and production of new materials.

Third, the service component includes a comprehensive support system, providing high-end technical services such as logistics and ports, maintenance and repair (O&M), research and development (R&D), and training of high-quality human resources.

According to the government's Resolution No. 38/NQ-CP, Vietnam will form three large-scale energy centers in Ba Ria-Vung Tau province (now part of Ho Chi Minh City), Quang Ngai province (now the new Quang Ngai after the merger of Kon Tum and Quang Ngai), and Thanh Hoa province, along with other dynamic regions such as Ca Mau, Can Tho, Quang Ninh, Ninh Thuan (now part of Khanh Hoa province), Binh Thuan (now part of Lam Dong province), Quang Tri, Hai Phong, and Nghe An.

"This is also an opportunity for localities to adjust their planning to approach new industrial development models, attract high-quality investment flows, and gradually improve their competitiveness," Petrovietnam stated in the same article on its website.

According to the corporation's general director Le Ngoc Son, the group currently owns important value chains such as oil and gas exploration and exploitation, oil refining and petrochemicals, gas-electricity-fertilizer, and offshore wind power.

"These are favorable foundations for Petrovietnam to gradually form an ecological energy and industrial center model, in line with the guiding spirit in the Politburo's Conclusion 76-KL/TW," he noted.

Regarding priority localities to accommodate the center, Petrovietnam said the consideration will be based on existing advantages: Vung Tau (now part of HCMC) with its strengths in oil & gas and offshore wind power, Long Son (now part of HCMC) with a chain of LNG projects, Ca Mau province with a gas-electricity-fertilizer complex, Dung Quat (Quang Ngai province) with an oil refinery, and Ha Tinh province with its LNG potential and gasoline storage infrastructure.

These advantages are core components for establishing regional centers, ensuring optimal investment efficiency and connecting with the existing Petrovietnam ecosystem.

The ultimate goal is to ensure sustainable growth while creating new products, services, and revenues, based on the foundation of science, technology, and innovation, Petrovietnam added.

Vietnam has revived the Ninh Thuan nuclear power project, with completion targeted within five years. Ninh Thuan 1 will be located in Phuoc Dinh commune, Thuan Nam district, and Ninh Thuan 2 in Vinh Hai commune, Ninh Hai district. Vietnam Electricity (EVN) and Petrovietnam have been named as the respective investors.