Vietnam's PV Gas Pipe inks comprehensive cooperation deal with S Korea's Nexteel

PV Gas Pipe, a member company of PV Gas, signed a memorandum of agreement (MoA) with South Korean steel pipe manufacturer Nexteel Co., Ltd., in Ho Chi Minh City last week.

PV Gas Pipe is a leading enterprise in Vietnam in the field of oil and gas steel pipe manufacturing, owning a factory with a capacity of 100,000 tons per year in the Soai Rap Petroleum Service Industrial Park, the Mekong Delta province of Tien Giang.

Established in 2010, it applies quality management systems according to American Petroleum Institute (API) and International Organization for Standardization (ISO) standards, and boasts a young, passionate and professional workforce.

Its products meet the strict standards of the oil and gas industry and have been used in important projects such as Nam Con Son, Nam Con Son 2, Gallaf Batch 3, and Greater Changhua.

Nexteel Co., Ltd., a South Korean leader in steel pipe manufacturing, has 35 years of experience. With factories in Pohang, Seoul, Busan (South Korea), Houston (the U.S.), and Vancouver (Canada), it boasts an annual production capacity of 1.34 million tons of steel pipes. The company specializes in OCTG pipes, oil and gas pipelines, and structural pipes, serving a vast distribution network across the U.S., Canada, Mexico, the Middle East, and Africa.

This MoA marks a significant milestone in both companies' strategies to expand their markets and boost their competitiveness. PV Gas Pipe has agreed to designate Nexteel as its global distribution partner (excluding Vietnam) for LSAW API 5L steel pipes. In return, Nexteel will appoint PV Gas Pipe as its authorized distributor in Vietnam for ERW steel pipes, a product that PV Gas Pipe has yet to produce.

The strategic partnership is set to last until 2030, with PV Gas Pipe committing to supply Nexteel with steel pipes, starting at 10,000 tons in 2025, doubling the volume in 2026, and increasing to tally to 40,000 tons per year from 2027 to 2030.

Pham Van Phong, CEO of PV Gas, emphasized that the event represents a pivotal milestone in both companies’ growth and highlights their strong commitment to sustainable collaboration.

"With Nexteel’s global distribution network and PV Gas Pipe’s modern production facilities, I am confident that this partnership will achieve significant progress and unlock numerous opportunities in both regional and international markets," he stated.

Phong further affirmed that PV Gas would support with all resources possible to ensure the success of this collaboration.

At the ceremony, Nexteel chairman Hyo Jeong Park and PV Gas Pipe director Le Hong Hai both expressed their optimism for future cooperation. They emphasized that this strategic partnership would not only leverage the strengths of both companies but also expand markets and elevate the 'Made in Vietnam' brand on the global oil and gas steel pipe industry map.

“We are committed to ensuring production progress, rigorously controlling quality, and continually enhancing operational capacity to grow together with Nexteel,” said Hai.

Park also expressed Nexteel's commitment to working closely with PV Gas Pipe to achieve mutual goals and success for both companies.