Vietnam is facing a golden opportunity to exploit its advantages in the global liquefied natural gas supply chain.
On December 18, Clean Energy Magazine in collaboration with the Institute for Strategy and Policy Research on Industry and Trade - Ministry of Industry and Trade organized the Forum "Global Liquefied Natural Gas (LNG) Distribution Chain and Vietnam's Position".
Get on the LNG map
MSc. Nguyen Duc Tung - Institute for Strategy and Policy Research on Industry and Trade - said that Vietnam has officially entered the global LNG map as a new importer in 2023.
Mr. John Rockhold - Head of the Electricity and Energy Working Group, Co-Chair of the Energy Subcommittee of the American Chamber of Commerce in Vietnam (AmCham) - informed that US President-elect Donald Trump will have discussions related to LNG in the direction of wanting to export LNG to Vietnam with a 50% reduction in transportation costs compared to before. If the two countries negotiate the transaction successfully, the cost of LNG to Vietnam could decrease to 3 USD/MMBtu.
According to experts, with its favorable geographical location and strong commitment to energy transition, Vietnam is expected to be an important link in the global LNG chain in general and in Southeast Asia in particular. With LNG demand forecast to reach 5-20 MTPA by 2030 and increase to 20-25 MTPA in the next 5 years, attracting investment and developing LNG infrastructure in Vietnam is also an inevitable development need.
However, in reality, Vietnam does not have any exploitation and liquefaction facilities, so LNG infrastructure mainly focuses on import, storage and regasification. Current consumption facilities are mostly gas-fired power plants, with great potential for future development as the demand for clean energy increases.
Activities at the 1 million ton LNG warehouse Thi Vai ( Ba Ria - Vung Tau province). Photo: VIETNAM OIL AND GAS GROUP
The VIII Power Plan sets a target that by 2030, Vietnam will develop 13 LNG power plant projects with a total capacity of 22,524 MW. However, currently, the whole country only has Nhon Trach 3 and 4 thermal power plant projects with a total capacity of 1,624 MW completed and ready for commercial operation. A number of other projects are under construction or undergoing investment preparation procedures. Mr. La Hong Ky, Office of the State Steering Committee for Energy Projects, stated that the reason why some projects are at risk of being behind schedule is because some provinces are still confused and slow in approving investment policies, bidding to select investors, as well as difficulties in site clearance, adjusting local planning, handing over land, and leasing land.
Building a competitive gas market
According to Dr. Nguyen Thanh Son, an independent energy consultant, the Power Plan VIII targets that by 2030, the total capacity of gas-fired power sources will account for 24.8% - the largest among power sources. However, this power source faces the challenge of high costs while the affordability on the demand side is still low. For gas-fired power to develop sustainably and effectively, it needs to be developed in balance with other power sources. "If it is not balanced with other sources, LNG power will not be able to be the "main actor" - that is, the base source in the power system, but will have to switch to the role of peak power, leading to very high power generation costs, and no investor will be able to recover capital" - Mr. Son analyzed.
A representative of the Department of Oil, Gas and Coal - Ministry of Industry and Trade informed that the ministry is building and perfecting the legal framework, mechanisms and policies for the LNG market, especially on gas prices for electricity production, thereby gradually establishing a competitive and transparent gas market.
On the experts' side, many opinions say that it is necessary to soon complete the legal framework and management mechanism for LNG power investment projects on the basis of creating conditions for financial arrangements for these projects. Specifically, it is necessary to review and revise regulations on investment procedures and order in the Investment Law, Bidding Law, Construction Law, Environmental Law, Planning Law... At the same time, build infrastructure for import and export, storage and supply of LNG.
Ba Ria - Vung Tau leads in developing LNG port warehouses
PetroVietnam Gas Joint Stock Corporation (PV GAS) has just signed a contract with PetroVietnam Power Corporation to provide the first LNG train for the trial run of Nhon Trach 3 and Nhon Trach 4 power plants. Previously, in March 2024, this unit also signed a contract to supply nearly 70,000 tons of LNG to Vietnam Electricity Group. In preparation for bringing LNG to the market, PV GAS spent many years planning and completing the construction of the Thi Vai LNG warehouse (1 million tons) in Ba Ria - Vung Tau province.
In addition, the Cai Mep LNG port warehouse invested by Hai Linh Company Limited has also been completed. Thus, with 2 LNG port warehouses, Ba Ria - Vung Tau is currently the leading locality in the country in developing port warehouse infrastructure for this type of fuel.
Source: https://nld.com.vn/de-viet-nam-la-mat-xich-cua-chuoi-lng-toan-cau-196241218214839787.htm
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