COMPANY OVERVIEW

  1. General Information
    1. Introduction
  • Transaction name: PetroVietnam Low Pressure Gas Distribution Joint Stock Company
  • Business Registration Certificate No. 0304998686, first registration on May 23rd, 2007, registration on changes for 11th times on December 31st, 2015, issued by Ho Chi Minh City Department of Planning & Investment
  • Charter capital: VND 899,990,250,000
  • Paid-in capital: VND 899,990,250,000
  • Address: Floor 7th, PV Gas Tower, No. 673 Nguyen Huu Tho Road, Phuoc Kien Commune, Nha Be District, Ho Chi Minh City, Vietnam
  • Telephone: 028.3784.0445
  • Fax: 028.3784.0446
  • Website: www.pvgasd.com.vn
  • Stock code: PGD
    1. Subsidiaries:
  1. Vung Tau Low Pressure Gas Distribution Enterprise:
  • Address: Floor 5-6th, Gas Tower Building, No. 61B, 30/4 Road, Thang Nhat Ward, Vung Tau City, Vietnam
  • Telephone: 025.4359.23(67) - (70)
  • Fax: 025.4356.0905
  1. Nhon Trach Low Pressure Gas Distribution Enterprise:
  • Address: Road D3, Vinatex Tan Tao Industrial Park, Phuoc An Commune, Nhon Trach District, Dong Nai Province, Vietnam
  • Telephone: 025.1356.6138
  • Fax: 025.1356.6137
  1. Northern Low Pressure Gas Distribution Enterprise:
  • Address: Lot area of 20,918,3 m², Tien Hai industrial zone, Dong Co Commune, Tien Hai District, Thai Binh Province, Vietnam
  • Telephone: 022.7365.5968
  • Fax: 022.7365.5969
 
 
* HISTORY OF ESTABLISHMENT & DEVELOPMENT
  • PetroVietnam Low Pressure Gas Distribution Joint Stock Company (PV GAS D), formerly known as Low pressure gas business Enterprise which was established in 2002, under PV GAS. On December 04th, 2007, PV GAS D was established pursuant to the Decision No. 1109/QD-DKVN of the Board of General Directors of Vietnam Oil and Gas Group. PV GAS D operates pursuant to Business Registration Certificate No. 0304998686, issued by Ho Chi Minh City Department of Planning and Investment on May 23rd, 2007 with initial charter capital of VND 330.000.000.000 (Three hundred and thirty billion dong) based on capital contribution of following shareholders:
  • PetroVietnam Gas Joint Stock Corporation - 18%;
  • PetroVietnam Southern Gas Joint Stock Company - 17%;
  • PetroVietnam Northern Gas Joint Stock Company - 15%;
  • General Trading Joint Stock Company in Ba Ria Province, Vung Tau – 10%;
  • Employees and officers of PetroVietnam Gas Joint Stock Corporation - one-member limited company, PetroVietnam Southern Gas Joint Stock Company, PetroVietnam Northern Gas Joint Stock Company, and Petro Vietnam Construction Joint Stock Corporation –(40% Charter Capital)
  • PV GAS D is established in order to meet increasing demand of natural gas usage of the industrial households in Vietnam over the past few years; as well as developing natural gas network in order to adequately satisfy the demand of domestic industrial gas users.
HISTORY OF DEVELOPMENT:
  • December 19th, 2008: Changed the founding shareholders for 1st times
The General Meeting of Shareholders of PV GAS D passed Resolution No. 02/NQ-DHDCD authorizing the partial transfer of shares held by General Trading Joint Stock Company in Ba Ria Province, Vung Tau to: Minh Thanh Co., Ltd. (3.29%), Kinh Thanh Trade Joint Stock Company (2.45%), and Phuong Mai Investment Joint Stock Company (2%)
  • October 14th, 2009: Changed the founding shareholders for 2nd times:
The General Meeting of Shareholders of PV GAS D passed Resolution No. 03/NQ-DHDCD authorizing the transfer of 1,086,000 shares (3.29%) held by a founding shareholder, Minh Thanh Co., Ltd., to Sacombank Securities Joint Stock Company, and according to the Law on Enterprises, after the acquisition of founding shares, Sacombank Securities Joint Stock Company became a founding shareholder of PV GAS D.
  • November 19th, 2009: PV GAS D was authorized by Ho Chi Minh City Stock Exchange under the Decision on listing approval No. 145/QD-SGDHCM.
  • On November 26th, 2009, it was a memorable milestone when stock of PV GAS D was first listed on HCMC Stock Exchange (HOSE) with stock code of PGD. This was the most noticeable evidence for the development of PV GAS D.
  • In 2010, PV GAS D issued  additional shares to increase its charter capital from 330,000,000,000 VND (three hundred and thirty billion dong) to 429,000,000,000 VND (four hundred and twenty nine billion dong) with additional releases of 9,9 million shares.
  • In Q4 of 2010, PetroVietnam Gas Joint Stock Corporation conducted the restructuring of its portfolio through an agreement on transfer shares of            PV GAS D from PetroVietnam Southern Gas Joint Stock Company and PetroVietnam Northern Gas Joint Stock Company, and matching orders for increasing its shareholding ratio in PV GAS D to 50.5% of its charter capital.
  • In 2014, PV GAS D issued 17.1 million additional shares to increase its charter capital from 429 billion dong to 600 billion dong. In which, PetroVietnam Gas Joint Stock Corporation continued to hold 50.5% of charter capital of                PV GAS D.
  • In 2015, PV GAS D issued 29,999,025 million additional shares to increase its charter capital from 600,000,000,000 dong to 899,990,250,000 dong. In which, PetroVietnam Gas Joint Stock Corporation continued holding 50.5% of charter capital of PV GAS D.
  • After 10 years of establishment and development, PV GAS D has continued to grow rapidly both in production and revenue over the years. It has made positive contributions to the nation’s development, paid budget annually expected from 90 - 100 billion VND.
DEVELOPMENT OF GAS SUPPLY NETWORK:
PV GAS D invested to extend the gas supply network in industrial zones:
  • In August 2008, Phu My-My Xuan-Go Dau natural gas distribution system - Phase 2 has completed and put in operation.
  • In 2012, the natural gas distribution system for Nhon Trach-Dong Nai and Hiep Phuoc-HCMC industrial zones has completed and put in operation.
  • Currently, PV GAS D continues investing to expand its natural gas distribution systems in Ba Ria-Vung Tau Province, Dong Nai Province, and Ho Chi Minh City.
  • Especially, to develop natural gas market in the North and provide CNG to Northern customers; in 2014, PV GAS D invested in a natural gas distribution system project in Tien Hai Industrial Zone, Thai Binh Province. This project has been put in operation and provided natural gas for Northern customers since August 2015, marking the expansion of natural gas distribution market across Vietnam's territory.
  • In addition, PV GAS D is researching to invest the gas distribution systems for industrial zones in Binh Duong, South-western Region, and Central Region.
    1. Achievements in 2016 - 2017
  • Merit certificate granted by Vietnam Oil and Gas Group;
  • Certificate of Sustainable Business in Vietnam 2016;
  • Application of Quality Management Index Development Process – QMix 100 2016;
  • Emulation flag granted by the Ministry of Industry and Trade, merit certificate granted by the Prime Minister, and being nominated for 2nd-Class Labor Medal consideration;
  • Merit certificate granted by the Ministry of Industry and Business Department, Production Support Team, and Vung Tau Low Pressure Gas Distribution Enterprise under the Company.
* BUSINESS LINES:
  1. Business lines and areas:
    1. Main business lines
  • Trading and transportation of natural gas through pipelines;
  • Trading and transportation of industrial gas, dry gas products, LPG, CNG, LNG and oil and gas derivatives;
  • Management, operation, maintenance and repair of gas construction works and projects;
  • Technology transfer consulting;
  • Constructing of industrial works, pipeline systems, warehouses and yards, and extracting stations for oil and gas industry;
  • Designing gas systems (NG, CNG, LNG, LPG) and gas construction works.
  • Other lines of business as registered with the Department of Planning & Investment of Ho Chi Minh City
    1. Business areas:
  • Phu My-My Xuan-Go Dau Gas Supply System and Expanded Phu My-My Xuan-Go Dau Gas Supply System for supplying natural gas to industrial zones of Phu My, My Xuan, Cai Mep in Ba Ria-Vung Tau Province and Go Dau in Dong Nai Province. 
  • Natural Gas supply systems for Nhon Trach industrial zones, Dong Nai Province;
  • Natural Gas supply systems for Hiep Phuoc industrial zone, Ho Chi Minh City;
  • Natural Gas supply systems for Long Hau industrial zone, Long An Province
  • Natural Gas supply systems for Tien Hai industrial zone, Thai Binh Province;
  • Trading CNG in Northern region and remote areas from pipeline system;
  • DEVELOPMENT GOALS AND ORIENTATION OF PV GAS D
  • General goals
  • To build up PV GAS D to become a strong joint stock company with leading position in natural gas supply field on national scale. To diversify its business lines and promote market development toward diversification of products and consumer households to increase value-in-use of gas. To provide customers with stable, quality and sufficient gas sources at appropriate prices that meet the needs of consumer households and ensure mutual benefits. To offer policies to encourage industrial households to switch from traditional fuels to natural gas in their production operations. To maintain a stable growth in South-Eastern natural gas market and ensure a rapid growth in natural gas and CNG markets in Northern, South-Eastern and South -Western regions. To conduct the research and development of gas supply system in Central region with gas sources.
  • Detailed goals
  • To develop and operate gas systems in a synchronous, safe, effective, and optimal manner to ensure frequent, continuous, and stable supply of gas to customers.
  • Year 2020 2025 2030 2035
    Production
    (Million Sm3)
    1,135 1,536 1,882 2,132
  • To reach the target of gas consumption in 2020-2035 period as follows:
  •  
     
  • To affirm and strengthen its position as the leading distributor of natural gas on national scale, enhance the development of CNG, Gas City, ES (Energy Saving) markets, etc. on national scale.
  • To expand the scope of natural gas supply plans and model (through a central station/intermediary facilities, etc.) so as to increase the number of customers and gas consumption.
  • To diversify its lines of business: PV Gas D focuses on pipe-based gas business (industrial zones and urban areas), as well as focus on developing relevant services (consulting, design, installation, maintenance, repair of gas equipment, supply of co-generation and energy saving solutions, etc.).
  • To diversify the products: in addition to NG and CNG products, PV Gas D is planning to develop a business strategy to pioneer with a range of imported product, LNG.
  •  
    * DOMESTIC COOPERATION:
    On basis of mutual benefits, PV Gas D has established close cooperation with local governments, industrial zones authority, and the industrial zones owner for investment in and development of gas consumption market, specifically:
    PV Gas D has worked with local governments, Departments of Industry & Trade, and industrial zones authority of Ba Ria-Vung Tau Province, Dong Nai Province, and Tien Hai, Thai Binh Province for updating the planning and development plans of local industrial zones and investment projects, to plan contact, meeting, introduce natural gas to partners, customers.
    PV Gas D has also cooperated closely with the industrial zone owners, infrastructure development companies to search for customers and introduce natural gas. Currently, PV Gas D has been establishing relationships with Vietnam Urban and Industrial Zone Development Investment Corporation - one-member limited company (IDICO), Industrial Urban Development Joint Stock Company No. 2. (D2D), Thao Dien Real Estate Joint Stock Company, Project Management Unit (PMU) of Tien Nghia Industrial Zones, Formosa, Vinatex Tan Tao Investment Joint Stock Company, Viglacera Real Estate Trading JSC, Thanh Binh Phu My Joint Stock Company, Hiep Phuoc Industrial Zone Joint Stock Company, AMATA Long Thanh Urban Joint Stock Company, Saigon Construction Joint Stock Company - one-member limited company, etc. supplying natural gas to 87 customers with production of over 920 million Sm3/year in Cai Mep, Phu My, My Xuan industrial zones, Ba Ria-Vung Tau Province, Go Dau, Nhon Trach industrial zones, Dong Nai Province, and Hiep Phuoc IZ, HCMC, Tien Hai IZ, Thai Binh, Thai Nguyen IZ, Hung Yen IZ, Nam Dinh IZ, Ninh Binh IZ, Bac Ninh IZ, etc.
    Customers of PV Gas D mostly operate in fields of producing iron and steel, ceramic tiles, ceramics, glass, fiber, textile, fertilizer, etc, many of which are leading enterprises such as: Posco, China Steel, Vina Kyoei, Taicera Granite Ceramic & Porcelain tiles JSC, Pancera, White Horse Ceramic, VTC Ceramic JSC, Royal Ceramic Ltd, MIKADO, Vietnam Glass Industry, Malaya Glass, Hyosung.
    * INTERNATIONAL COOPERATION:
    From the beginning of 2016, world oil price fluctuated sharply despite OPEC's efforts to balance the market. The oil and gas industry of Vietnam in general and PetroVietnam Low Pressure Gas Distribution Joint Stock Company (“PV GAS D”) in particular has been directly affected by this situation. In addition, other major projects of PV Gas D in the period of 2016 - 2025 have been progressively implemented, which brought about significant changes in the production and business of the Company.
    Facing such opportunities and challenges, the Management of PV GAS D has been mentored by PetroVietnam Gas Joint Stock Corporation (“PV Gas”) to take the lead in considering and assessing the situation in order to build and take advantages of the opportunities in expanding international cooperation. The year 2017 marked a new breakthrough when PV GAS D signed a strategic cooperation agreement with Tokyo Gas Asia (“TG Asia”), a subsidiary of Tokyo Gas (“TG”).
    After a long time of working, negotiating, exchanging information, and finding of each other, on July 11th, 2017, the Signing Ceremony of the Strategic Cooperation Agreement between PV GAS D and TG Asia was successfully carried out. TG, with over 130 years of experience in the gas business, is one of the leading gas importers and distributors in Japan with a charter capital of 141,884 million yen. TG Asia is located in Singapore and has got a charter capital of SGD 124.4 million. Its main business lines are business management and investment and it serves as the global headquarter of TG in Southeast Asia.
    This strategic cooperation agreement aims to establish a long-term cooperation on the basis of harmonizing the benefits between PV GAS D and TG through the investment made by TG Asia in PV GAS D. PV GAS D will be supported by TG's experience and expertise in fields of energy solutions, technical solutions, advanced science, and technology in related fields, in order to maximize the potentials of its management, finance, technology, markets, and brand, as well as to utilize the resources of each party in ensuring the sustainable and effective development of PV GAS D.