PetroVietnam Gas Corporation, trading under the ticker GAS on the Ho Chi Minh Stock Exchange, is a leading energy enterprise in Vietnam. Established in 1990, GAS is an extension of the state-owned Vietnam Oil and Gas Group or PetroVietnam.
In the first half of 2024, GAS’s revenue rose by 18 percent year over year to US$2.2 billion. This was driven by an increase in exports to foreign markets, like Cambodia, which resulted in a 51 percent increase in liquefied petroleum gas or LPG sales, accounting for 50 percent of its total revenue.
In contrast, dry gas output fell by 18 percent compared to last year, prompting GAS to import 330 million cubic meters of liquefied natural gas or LNG to offset the decline. This aligns with a broader trend of declining domestic natural gas production after prolonged exploitation, with output expected to decrease from over 6 billion cubic meters per year currently to around 4 billion cubic meters per year by 2028.
Amid declining domestic natural gas production, imported LNG is slated to play a crucial role as a long-term alternative energy source. Currently, GAS is the first and only enterprise in Vietnam authorized to officially distribute LNG. GAS is involved in several key LNG projects, including the Thi Vai and Son MY LNG port warehouse and the Block B – O Mon gas pipeline projects. These factors are expected to enhance the company’s gas supply capacity, driving future business growth.
Disclosure: The author does not have any financial interest in GAS stock.