PVChem and Messer SE & Co. KGaA to build $37 million industrial gas plant

PVChem and Messer SE & Co. KGaA to build $37 million industrial gas plant

PetroVietnam Chemical and Services Corporation (PVChem), a member of Petrovietnam, and Germany's Messer SE & Co. KGaA have signed a joint venture agreement to establish Cai Mep Industrial Gases Co., Ltd.

The joint venture will invest in an industrial gas plant in Cai Mep Industrial Park, Ho Chi Minh City, with an annual capacity of 200,000 tonnes. With a total investment of $37 million, the plant is expected to begin construction at the end of 2026 and be put into operation at the end of 2028.

The Cai Mep industrial gas plant is designed in line with a green and circular economy model. It leverages cold energy from PVGas's liquefied natural gas (LNG) storage system for deep cooling in the gas separation process. The plant will adopt cryogenic air separation technology from the EU while recovering cold energy generated during LNG regasification.

The solution brings significant energy savings and cool water, thereby reducing carbon emissions indirectly and improving overall environmental efficiency. The plant will be a key link in Petrovietnam’s LNG – industrial gas – clean energy value chain, contributing to enhancing energy efficiency, reducing carbon emissions, and optimising existing gas infrastructure.

This is a pioneering venture in energy transition, green and circular economy models, and value chain integration for Petrovietnam and PVChem. The venture also demonstrates Messer's strong commitment to the shift towards green manufacturing through carbon emissions reduction and energy saving.

Le Manh Hung, chairman of the members' council of Petrovietnam, stated, “The industrial gas plant by the Messer – PVChem joint venture is a concrete step towards implementing Petrovietnam's green energy and circular economy strategy, in line with Vietnam's carbon neutrality goals.”

In the same vein, Bernd Eulitz, CEO of Messer SE & Co. KGaA, said, “Messer is honoured to cooperate with PVChem and Petrovietnam in implementing the LNG-driven air separation unit to optimise energy efficiency and meet European environmental standards.”

Messer SE & Co. KGaA has been operating in Vietnam for 27 years, with total investments exceeding $500 million.

Truong Dai Nghia, chairman of the board of directors of PVChem, said, “The joint venture with Messer marks a strategic step to expand green production, strengthen internal collaboration within Petrovietnam, and promote the formation of a sustainable value chain.”

VIR