Petrovietnam Journal

Trends in ESG adoption and some proposals for Vietnam Oil and Gas Group

Minh Tien Bui — 2024-08-30

The integration of ESG (Environmental, Social, and Governance) into business strategies is becoming an inevitable and increasingly urgent trend in the energy industry, with an increasing focus on carbon emission reduction, investment in renewable energy, and enhanced transparency in corporate governance.

This paper provides a detailed analysis of ESG adoption trends in the global energy industry and proposes specific recommendations for Vietnam Oil and Gas Group (Petrovietnam). Accordingly, Petrovietnam needs to develop a comprehensive ESG roadmap, including specific and measurable objectives, to enhance its competitive position and ensure sustainable development in the global energy transition trend.

Strategies of KNOC, Petronas, JAPEX and Equinor to develop in the new context

Doan Duy Dao — 2024-08-30

Amidst geopolitical conflicts threatening energy security and pressures from energy transition trends, oil and gas companies have developed and adjusted their medium- and long-term strategies to simultaneously address both concerns. For national oil and gas companies or those with significant state ownership, domestic energy supply and demand are also crucial factors in determining their roadmaps. Core oil and gas value chains are sustained; at the same time, research and development on energy transition and emission reduction are being intensified to keep up with the unreversed market trends. The roadmap for the next two to three decades of these oil and gas companies serves as a reference for the Vietnamese oil and gas industry to find a suitable direction, meeting the energy demands for national development.

Research on proposing a portfolio and solutions to develop key products of Vietnam Oil and Gas Group to 2030 and vision to 2050

Thi Dao Hoang — 2024-08-30

The global oil and gas industry is facing profound changes due to the impact of energy transition trends, commitments to net-zero emissions by 2050, and the development of new technologies. This trend promotes the growth of clean and renewable energy sources (such as wind power, solar power, hydrogen, and biofuels), while putting pressure on the demand for traditional fossil fuel products.

This paper analyzes factors affecting the selection of key products by Vietnam Oil and Gas Group (Petrovietnam) for the period up to 2030 and vision to 2050, concentrating on four main aspects: (1) Global market trends and new energy technologies; (2) Current production and business capabilities and innovation potential of Petrovietnam; (3) Vietnamese policies on renewable energy, emission reduction, and sustainable development; and (4) Petrovietnam's long-term strategic development orientation. The author uses the SWOT analysis method combined with a product evaluation matrix based on criteria of market, technology, environment, and Petrovietnam's capabilities to identify the portfolio of key products for the period up to 2030 and vision to 2050.

The results show that, in addition to maintaining and developing existing key products such as crude oil, gas, petroleum products, gas- fired electricity, and inorganic fertilizers in the short term, Petrovietnam needs to focus on investing in new energy products, renewable energy, petrochemicals, and green, clean, environmentally friendly products such as offshore wind power, hydrogen, biofuels, organic fertilizers, bioplastics, and CCS/CCUS-derived products to ensure long-term sustainable development. This is the scientific basis for formulating long- term product development strategies, helping Petrovietnam proactively adapt to energy transition trends, enhance competitiveness, and build a sustainable energy value chain.

Integrating green hydrogen and green ammonia into the operational value chain of Vietnam Oil and Gas Group

Huu Luong Nguyen — 2024-08-30

To adapt to the energy transition trend, the Government has set a goal of achieving net-zero emissions by 2050, along with policies to control and limit emissions, and promote green solutions in Vietnam, including green hydrogen (GH2) and green ammonia (GNH3). Besides improving operational efficiency in traditional energy sectors, Vietnam Oil and Gas Group (Petrovietnam) aims to participate in new energy value chains, renewable energy, carbon capture, utilization and storage (CCUS), and production of green hydrogen/ammonia to gradually integrate into existing operations.

Based on leveraging advantages in resources and experience in oil and gas operations, Petrovietnam is also researching the development of offshore wind power and GH2 production to integrate into upstream activities, utilizing existing gas pipeline systems to transport mixtures of natural gas and GH2 and supply to refineries, fertilizer plants, gas/LNG power plants...

In the long term, Petrovietnam may consider new investments in GNH3 production plants from GH2 to serve the greening needs of other operational areas such as coal-fired power plants and maritime transportation. With its role as an operator or controlling shareholder in oil and gas exploitation and transportation units, refineries, coal-fired power plants, fertilizer production plants, etc., Petrovietnam and its member units can participate in this supply chain based on the competitive advantages of each unit/plant and form chain linkages, developing sustainably in the new context of the energy industry.

Legal framework for carbon capture, utilization and storage (CCUS): International experience and recommendations for Vietnam

Anh Duc Nguyen — 2024-08-30

Carbon capture, utilization and storage (CCUS) technology is being regarded as a crucial solution to reduce greenhouse gas emissions and achieve global climate goals. However, the deployment of this technology requires a comprehensive legal framework to ensure safety, efficiency, and compliance with environmental standards.

This paper introduces the current legal framework related to CCUS worldwide, based on which recommendations are proposed for developing a legal framework for this activity in Vietnam.