PV Gas (GAS) Signs Nam Du-U Minh Gas Contracts, Adding 4.44B Sm3 Reserves

Overview

PV Gas (GAS) has signed gas purchase contracts for the Nam Du and U Minh fields, adding an estimated 4.44 billion Sm3 of gas reserves to supply the Southwest region. The project will cover about 30% of current gas demand in the Ca Mau area from late 2028 to 2035, addressing declining domestic gas supply and supporting energy security.

Key Facts

• GAS signed gas purchase contracts for the Nam Du and U Minh fields, with estimated reserves of 4.44 billion Sm3.
• The project will supply approximately 2.27 million Sm3 per day, covering about 30% of current gas demand in the Ca Mau region.
• Gas supply is expected from late 2028 to 2035.
• The Nam Du field (Block 46/07) is operated by Mitra Energy (Vietnam Nam Du) Pte. Ltd, and the U Minh field (Block 51) by Mitra Energy (Vietnam Tho Chu) Pte. Ltd.
• The field development plans were approved by the Ministry of Industry and Trade on March 18 (Decision No. 477).
• GAS has already supplied over 30 billion Sm3 of gas to power and fertilizer plants in the region over nearly two decades, with annual revenue of about VND 17,000 billion.
• GAS has contributed over VND 14,000 billion in state budget from its operations in the Southwest region.

What Happened

PV Gas (GAS) signed gas purchase contracts for the Nam Du and U Minh fields, as announced by Petrovietnam and PV Gas. The contracts add an estimated 4.44 billion Sm3 of gas reserves to supply the Southwest region, covering about 30% of current demand in Ca Mau from late 2028 to 2035. The project is part of efforts to address declining domestic gas supply and ensure energy security.

Petrovietnam Deputy General Director Nguyen Xuan Huyen emphasized the project’s significance for national energy security and regional development. PV Gas General Director Pham Van Phong noted that the company has built and operated the PM3-Ca Mau gas system, including a 325 km pipeline, two gas stations, and one gas distribution center, with a transport capacity of 2.0 billion Sm3 per year.

Market Context

GAS closed at VND 79,000 on April 15, 2026, down 0.13% with low volume of 979,900 shares. The stock trades on HOSE. The gas sector faces declining domestic supply, making new gas discoveries critical for maintaining operations at key customers such as Ca Mau Power Plant 1 & 2 (1,500 MW), Ca Mau Fertilizer Plant (800,000 tons urea/year), and Ca Mau Gas Processing Plant. The project provides long-term visibility for GAS’s gas supply beyond 2028.

Strategic Significance

The Nam Du-U Minh project is strategically important for GAS as it replenishes gas reserves amid declining domestic production. The project strengthens GAS’s position as the key gas supplier in the Southwest region, supporting its long-term revenue stream from gas sales to power and industrial customers. The involvement of Petrovietnam and approval from the Ministry of Industry and Trade provide regulatory support, reducing execution risk.

What to Watch

• Progress on field development and infrastructure construction timelines.
• Updates on gas sales agreements with end-users (power plants, fertilizer plants).
• Any changes in gas demand from Ca Mau region due to new power projects or fuel switching.
• GAS’s quarterly production and revenue reports to track existing gas supply trends.
• Potential for additional gas discoveries in the Malay-Tho Chu basin.