Petrovietnam Journal

Energy transition trends and response solutions for the Vietnam Oil and Gas Group

Huu Luong Nguyen — 2024-07-18

The energy industry is facing a shift towards energy transition to reduce carbon emissions from activities, aiming to achieve net-zero emissions by 2050. The main trends include (1) Energy conservation, (2) Renewable energy development, (3) Electrification, (4) CCS/CCUS, and (5) Hydrogen development. For the Vietnam Oil and Gas Group (Petrovietnam), these energy transition trends not only create challenges that require appropriate steps to minimize carbon emissions from oil and gas activities, but also, create opportunities to expand the value chain of operations towards efficient and sustainable development. To overcome these challenges, Petrovietnam needs to establish a roadmap with specific goals and plans to implement energy transition solution groups based on a combination of: (1) Solutions to reduce carbon emissions from oil and gas activities towards the goal of achieving net-zero emissions by 2050; (2) Solutions to develop and expand the value chain in line with energy transition trends and ensuring sustainable development; and (3) "Just transition" solutions to protect workers' rights and promote a smooth and effective energy transition process. Mobilizing total resources within and outside Petrovietnam is crucial to realizing the above goals and plans. Petrovietnam needs to incorporate these objectives into its strategy and have plans for implementation, monitoring, and periodic updates on progress.

Energy transition trends and greenization experience of some oil refineries and petrochemical plants

Huu Luong Nguyen — 2024-07-18

The global oil refining and petrochemical industry is facing unprecedented challenges when it comes to meeting the increasing demand for fuel while addressing the urgent need to reduce carbon emissions.

This paper provides specific examples of the transformation potential of oil refineries worldwide by 2050, with significant changes in products, processes, and materials to achieve sustainability and reduce carbon emissions. Additionally, the authors also present experience in implementing greenization of companies and oil refineries around the world in the focus of transitioning to bio-based feedstock usage; green hydrogen production; carbon capture, utilization, and storage; converting and expanding the existing processes; and employing advanced technologies.

Offshore wind power development in Vietnam: Opportunities, barriers, and policy solutions

Quy Ngoc Pham — 2024-07-18

With an extensive coastline and abundant wind resources, Vietnam can achieve an offshore wind technical potential of nearly 600 GW, significantly contributing to ensuring energy security and reducing carbon emissions. Experience from leading countries such as the UK, Denmark, Germany, and China shows the need for strong and synchronous support policies and close coordination among stakeholders.
The study analyzes the potential, opportunities, challenges and barriers in developing offshore wind power in Vietnam. These challenges and barriers need to be removed, such as the lack of a synchronous legal framework, inappropriate bidding mechanisms and electricity prices, unready technical infrastructure and supply chains, and limited domestic capacity in technology and human resources.
On that basis, the authors propose 8 groups of solutions: completing the legal framework, establishing a focal management agency, promulgating incentive policies, investing in research and development of human resources, spatial planning for marine space, strengthening international cooperation, leveraging green financial resources and raising community awareness and engagement.

Policy tools to support and leverage the development of Vietnam's wind power industry from experience of some pioneering countries worldwide

Thu Ha Nguyen — 2024-07-18

The article introduces the development roadmap for the offshore wind power industry, emphasizing its importance in reducing carbon emissions and promoting renewable energy. It describes the current priority policies for offshore wind power development, including tax incentives, financial support, and the establishment of special economic zones for renewable energy. The article also highlights key success factors such as transparent support policies, strong government commitments, and collaboration among stakeholders in pioneering countries like Denmark, Germany, and the UK.
Regarding the current situation in Vietnam, the authors analyze existing policy instruments and challenges in developing offshore wind power, and then propose improvement measures such as establishing a clear and comprehensive policy framework, enhancing investment in infrastructure and R&D, as well as creating more favorable conditions for domestic and foreign investors in this field.

Carbon market: Experience of global oil and gas enterprises and orientation for the Vietnam Oil and Gas Group

Thi Hanh Pham — 2024-07-18

In recent years, to solve problems related to climate change, the United Nations (UN) has determined the exchange of carbon credits as one of the most important tools in mitigating greenhouse gas emissions. Through the carbon market, global oil and gas companies can effectively and economically reduce greenhouse gas emissions. Vietnam also has a strategic framework and targets to promote emissions reduction in different sectors. In the coming years, carbon pricing will play an important role in incentivizing mitigation in high-emissions sectors, helping Vietnam achieve its net zero emissions target by 2050. However, the carbon market is a new field, and domestic enterprises in general and the Vietnam Oil and Gas Group (Petrovietnam) in particular do not have much experience participating in carbon credit trading.
This article analyzes the carbon credit trading experiences of leading oil and gas enterprises worldwide, thereby proposing an orientation for Petrovietnam’s participation in the carbon market.

Carbon footprint calculation method for petroleum products in Vietnam

Xuan Hoan Vu — 2024-07-18

The Vietnam Oil and Gas Group (Petrovietnam) has developed and approved an action plan to mitigate and adapt to climate change for the 2018 - 2030 period. Goals, tasks and actions are set to respond to climate change. Petrovietnam targets the greenhouse gas emission reduction of 15.55 million tons of CO2 equivalent by 2025 and 23.53 million tons of CO2 equivalent by 2030. This research aims to support Petrovietnam in developing a method to calculate carbon footprints for a number of oil and gas products according to international standards, thereby providing solutions to reduce greenhouse gas emissions.

Payment for forest environmental services: From theory to practice in Petrovietnam power plants

Vi Sa Tu — 2024-07-18

Acorrding to Vietnam Forest Protection and Development Fund’s report, over the past 10 years, the total payment for forest environmental services has reached more than 25,000 billion VND [1]. Of this amount, power plants with capital contribution from Vietnam Oil and Gas Group (Petrovietnam) have contributed over 260 billion VND in forest environmental service fees. However, power plants in general have to face common difficulties when having to pay for forest environmental service fees from their own production and business funds without being able to account for it into electricity prices.
The article focuses on evaluating theoretical principles, current policies, and the effectiveness of the forest environmental service payment mechanism, concentrating on the case of oil and gas power plants. Research results indicate the need to continue improving policies to balance environmental protection goals and business efficiency, especially the need to solve the issue of incorporating forest environmental service costs into electricity prices in power purchase agreements.