Representatives of PVGas South and PVGazprom NGV sign an agreement to promote use of natural gas. — Photo pgs.com.vn

HA NOI (Biz Hub) — PVGas South and PVGazprom NGV have signed an agreement to promote use of natural gas in Viet Nam's transport sector.

The companies said they will collaborate in building programmes to develop the natural gas market, construct gas stations, and provide technical advice to enterprises purchasing and using equipment that consumes natural gas.

PetroVietnam Gas Corporation (PVGas), the parent company of PVGas South and an affiliate of the Viet Nam Oil and Gas Group, said in an online report that many localities in the southern part of the country are accelerating the use of compressed natural gas (CNG).

HCM City and neighbouring Binh Duong, Ba Ria – Vung Tau and Dong Nai provinces are using more CNG as fuel for public means of transport such as taxis and buses – an ongoing trend in the world.

CNG vehicles have higher emission standards and save between 20 per cent and 30 per cent of fuel costs compared to diesel vehicles. Although CNG buses are more expensive, lower operation and maintenance costs make them attractive to investors, the report said.

Binh Duong has developed five routes for CNG buses, while HCM City plans to have about 150 CNG buses operating on four similar routes by the end of this year.

PVGas South is committed to supplying adequate gas for these localities to run the vehicles, creating better living conditions in major southern cities, the report said.

PVGas South, or PetroVietnam Southern Gas JSC, is based in HCM City with VND500 billion (US$22.2 million) in equity.

PVGazprom was established in this city last October with a charter capital of VND200 billion. PVGas contributes 29 per cent to the amount, while Russian firms – Gazprom International Projects B.V. and Gazprom Engine Fuel LLC – each represents 35.5 per cent. — VNS