On August 12, 2024, the Vietnam National Petroleum Group (Group/Petrolimex – ticker symbol: PLX) and the Global Energy Alliance for People and Planet (GEAPP) signed a cooperation programme to provide technical assistance for Petrolimex’s energy transition plan.

Attending the signing ceremony, on behalf of GEAPP were Mrs. Sunita Dubey – Country Representative for the GEAPP in Vietnam; Ms. Nguyen Thi Thanh Minh – National Coordination Director, GEAPP Vietnam; Mr. Nguyen Tuan Anh – Executive Director of RCEE-NIRAS, Technical Advisor for GEAPP Vietnam and specialists in the fields of energy, climate and sustainable development from GEAPP.

Board of Directors member – Petrolimex General Director Dao Nam Hai presided over the reception and working session with the GEAPP delegation. Also welcome and working with the delegation were Petrolimex Deputy General Director Nguyen Ngoc Tu; Head of the Research and Development Department Nguyen Manh Ha; Head of the Strategy and Investment Department Do Giang; Head of the Communication and Public Relations Departmen Do Quoc Chinh; Chief of Staff Nguyen Anh Hoang; and some officers from professional departments.

Accordingly, Petrolimex and GEAPP agreed on the coordination contents  to be implemented until May 2025, including: Supporting the development of an initial plan for Petrolimex’s energy transition, sharing information on international trends, existing best technologies/practices, and case studies; Assisting in the pre-feasibility study for hybrid solutions (renewable energy, storage batter systems) to build electric vehicle infrastructure; Providing technical training and capacity building; Participating in and contributing comments to workshops and conferences.

Addressing the working session, Board of Directors member and Petrolimex General Director Dao Nam Hai said that Petrolimex is fully aware of its responsibility to reduce carbon emissions. The Group aims to achieve carbon neutrality in scopes 1 and 2 by 2026. To accomplish this goal, Petrolimex is urgently developing an action plan with synchronized and comprehensive solutions to reduce greenhouse gas emissions across its operations, from the Parent Company to its subsidiaries.

In July, 2024, the Group officially released its greenhouse gas inventory report and is implementing projects on rooftop solar power, as well as researching emission reduction measures at high carbon emission points in its production and business activities, such as the deep-sea vessel fleet and tank truck fleet.
Additionally, Petrolimex is implementing afforestation solutions and providing water purification systems to impoverished communities across various regions in Vietnam. These initiatives can be verified and audited to accumulate carbon credits.

In Vietnam, the concepts of reducing greenhouse gas emissions, achieving carbon neutrality, and approaching Net Zero are still relatively new. Therefore, Petrolimex seeks cooperation and support from GEAPP, an international organisation with practical experience, to assist Vietnamese businesses in Vietnam in reducing emissions. Petrolimex anticipates that GEAPP will offer advice and support in setting specific goals, formulating effective action plans, and developing a realistic energy transition roadmap. 

Mrs. Sunita Dubey, Country Representative for the GEAPP in Vietnam, praised Petrolimex’s efforts in the energy transition process. She emphasised that state-owned enterprises in the energy sector in Vietnam face number challenges in enhancing competitiveness and positioning key products. The key barriers due to the increasing demands of international investors and national commitments reduce emissions, the high costs of the energy transition process, and meeting environmental and social requirements. In the current context, an energy transition plan is necessary and needs to be integrated into the development strategy of enterprises. Support from GEAPP can help address these barriers by providing technical assistance such as promising technologies, setting emission reduction targets, and providing technical training as well as special support.

Energy transition is an inevitable and irreversible trend, but it is a long-term process that requires feasible evaluations suitable for Vietnam’s infrastructure and social conditions. Petrolimex wants to understand correctly to avoid falling into a state of apathy, taking no action due to a lack of understanding. At the same time, it aims to avoid a state of excessive fear and radicalism that would lead to allocating resources to costly, unnecessary, and unfeasible activities.

The group will effectively utilise GEAPP’s support to transform this cooperation opportunity into concrete results in the energy transition process in the future.