Illustrative image (Photo: VNA)According to the firm, the electrification sector has beengreatly impacted by the growth of renewable energy sources. Meanwhile, liquefiednatural gas (LNG) power projects under construction must develop a plan for conversionto hydrogen fuel.
Gasoline demand in Vietnam is forecast to continue to increase and peak in 2030-2035,while the diesel oil (DO) market is likely to be affected more slowly, and theDO supply shortage is forecast to continue until 2035.
According to Binh Son Refining and Petrochemical Joint Stock Company (BSR), inthe short term, energy transition has not had a clear impact on the demand forpetroleum products in Vietnam. However, in the long term, it is happening globally,leading to a decrease in the demand for petroleum products.
This is a challenge for refineries to enhance the quality of their productsand reduce the ratio of traditional fuels in their products and promote thedevelopment of environmentally-friendly products.
Regarding oil and gas exploration and production, oilproduction peaked in 2005 and is on the verge of a sharp decline. Meanwhile,even with the scenario of net zero emissions by 2050, oil is still usedfor non-energy purposes and in sectors that are difficult to replace fuel suchas the aviation industry and sea transport. In particular, gas production isforecast to increase rapidly, but low-cost gas sources are harder to find, whilenew gas sources are expensive and have to compete with LNG.
As of the end of June, about 40 countries had released strategies and roadmaps on hydrogen, including leading countries in greenhousegas emissions such as China, the US, India, Russia, and Japan. Currently, 98% ofthe world's hydrogen is produced from gas and coal used in oil and chemicalrefining.
Recently, PetroVietnam signed a memorandum of understanding with the AsianDevelopment Bank (ADB) on cooperation in energy transition.
Meanwhile, the firm has implemented 12 major tasks relatedto renewable energy, greenhouse gas emission reduction, economical andefficient use of energy, hydrogen, ammonia, battery/charging systems, energystorage, coal-fueled power plant greening, and Carbon Capture, Usage andStorage (CCUS).
PetroVietnam General Director Le Manh Hung said that thefirm has begun implementing the roadmap related to energytransition from 2019, but the process must be based on the national target.
Therefore, with the tasks in exploration and production, PetroVietnam will focuson implementing solutions to accelerate the exploration and exploitation of oiland gas, while considering the use of renewable energy in oil and gas exploitation activities, he said.
PetroVietnam pumped 5.48 million tonnes of crude oil in thefirst six months of this year, surpassing the set target by 23%.
Meanwhile, gasoline production exceeded 14% of the plan, fertiliser productionexceeded 8% of the plan, production and supply of gas, electricity and otherenergy products is also up.
The group’s revenue in the period was estimated at 468.3 trillion VND (20billion USD), up 55% year-on-year and double the goal set for six months.
It contributed 66.1 trillion VND to the State budget, 2.2 times higher than thehalf-year plan and an increase of 41% compared to the same period last year.
This is considered a remarkable achievement in a context of global geopoliticaland economic instability, caused by the conflict in Ukraine, increasedinflationary pressures and China's Zero COVID policy.
In 2021, PetroVietnam was listed among the three biggest companies in Vietnambehind Samsung Vietnam and Vietnam Electricity (EVN), according to the VNR500rankings unveiled by Vietnam Report JSC.
The rankings were compiled based mainly on enterprise revenue and otherperformance criteria such as total assets, employees, growth rates, profits,and prestige in the media.
PetroVietnam posted revenue of 620.2 trillion VND last year, surpassingthe yearly plan by 26.4%, and up 28% year-on-year./.
VNA
