Is Vietnam being sought after by many international LNG suppliers?

TPO - "Vietnam is expected to become a major importer, have a strong influence on the world LNG market and is being sought after by many international LNG suppliers" - Associate Professor, Dr. Thai Van Nam said.

Key Solution Liquefied Natural Gas (LNG) is an abbreviation for liquefied natural gas (natural gas is converted from gas to liquid by cooling to -2600F or -1600C), a clean fossil fuel that, when burned , produces 40% less CO2 emissions than coal and 30% less than oil. Currently, LNG is considered the "trump card" of the clean energy trend in the world. Vietnam is not left out after joining 147 countries in pledging to bring net emissions to zero by 2050.

The ship carrying nearly 70,000 tons of LNG arrived at Cai Mep - Thi Vai port warehouse ( Ba Ria - Vung Tau province) in July 2023, invested by PetroVietnam Gas Corporation.

A special milestone in Vietnam's "joining the pace" with the world's LNG is the ship in July 2023 carrying nearly 70,000 tons of LNG arriving at Cai Mep - Thi Vai port (Ba Ria - Vung Tau province) invested by PetroVietnam Gas Corporation (PV Gas - stock code: GAS), creating a major turning point for the Vietnamese energy industry. As an expert in environmental management, toxicology and sustainable development, Associate Professor, Dr. Thai Van Nam - Director of the Graduate Training Institute, Ho Chi Minh City University of Technology (HUTECH) said that the world's population has exceeded 8 billion people, leading to an increase in global energy consumption. The world is at an alarming level when the amount of carbon emissions that heat the planet has reached 36.8 billion tons in 2022. To achieve the goal of limiting the increase in global temperature and preventing excessive climate change, scientists affirm that it is urgent to deeply cut emissions in the coming time. The solution to this problem is to increase the use of natural gas and develop renewable energy. According to statistics, the world's demand for LNG increases at an average rate of 6.3%/year, the world's LNG capacity increases from 340 million tons/year (in 2017) to 453 million tons/year in 2022. The US and many other countries have accelerated the transition to LNG gas. In Vietnam, the production and import of LNG is also considered an important solution to ensure national energy security. Resolution No. 55/NQ-TW of the Politburo dated February 11, 2020 on the strategic orientation for Vietnam's national energy development to 2030, with a vision to 2045, sets out the task of developing the gas industry "prioritizing investment in technical infrastructure to serve the import and consumption of LNG ", while "focusing on rapidly developing gas-fired thermal power using LNG, gradually making gas-fired electricity an important source of electricity supply, supporting system regulation". Mr. Nam said that with its green, clean, sustainable, and environmentally friendly characteristics, LNG is identified as the optimal energy solution for Vietnam at this time. LNG will help reduce pressure on domestic gas sources, diversify energy sources, minimize energy security risks, and create many opportunities for socio-economic development.

Assoc.Prof.Dr. Thai Van Nam - Director of Graduate Training Institute, Ho Chi Minh City University of Technology.

Power Plan VIII has determined that renewable gas thermal power from LNG will account for more than 14.9% of the total capacity of the national power generation system by 2030 and is one of the sources that helps ensure adequate, stable and safe supply for the national power system. "With such demand, Vietnam is currently expected to become a major importer, having a strong influence on the world LNG market and is being sought after by many international LNG suppliers ," Associate Professor, Dr. Thai Van Nam. In addition, with a favorable geographical location in the center of Southeast Asia, with many large seaports capable of receiving LNG tankers, convenient for importing and distributing LNG, Vietnam can become an LNG energy center in the region. Thereby attracting international investors and businesses. Transformation As a leading enterprise in the Vietnamese gas industry, Mr. Pham Van Phong - General Director of PV GAS said that the company has put the 1 million ton LNG Port Warehouse project in Thi Vai (Ba Ria - Vung Tau province) into operation since July 2023 and is the only unit currently granted a certificate of eligibility for LNG export and import traders in Vietnam. "PV GAS has completed the LNG center infrastructure system in Thi Vai and officially deployed the supply of LNG for industrial production from today (March 15) according to the integrated business model of LPG/CNG/LNG, providing customers with a variety of product choices, flexible supply and quality, and competitive prices," said Mr. Phong. PV GAS General Director affirmed that LNG with its outstanding advantages in energy efficiency, environmental friendliness, convenience in transportation and guaranteed supply is the key product in the optimal energy solution package. PV GAS's priorities for the market. The milestone of supplying LNG - a low-emission fuel source, serving industrial production, is an important milestone in PV GAS's green energy journey, demonstrating PV GAS's responsibility on the journey to realizing the goal of bringing net emissions to zero by 2050 as announced by the Prime Minister at COP26. In the future, Mr. Phong said, PV GAS will start construction of phase 2 of the Thi Vai LNG warehouse with a capacity of 3 million tons/year, expected to be operational in 2026; deploy the Son My LNG central port warehouse project in Binh Thuan with a total capacity of 6 million tons/year and deploy investment projects for central LNG port warehouses in the Northern and North Central regions. PV GAS also established agreements with leading LNG suppliers in the world to ensure a stable and competitive supply for the domestic market.

PV GAS's Thi Vai LNG warehouse.

According to Associate Professor, Dr. Thai Van Nam, with the ability to store large amounts of energy and reduce toxic emissions, LNG has become an environmentally friendly and significantly cost-saving solution. Currently, LNG is widely used in the world in the electricity, steel and metal industries, etc. LNG can also be used in vehicles, as well as providing energy for hotels, restaurants and tourist areas, etc. In particular, LNG electricity when burned produces 40% less CO2 emissions than coal and 30% less than oil. Therefore, developing LNG electricity ensures energy security, protects the environment and maintains sustainable development. The use of LNG in electricity production not only helps reduce emissions to the environment but also contributes to ensuring energy security thanks to easy transportation and diverse supply sources. This is also a solution for businesses to reduce CO2 emissions from their production, business and service activities. Currently, Vietnam has begun to use LNG as a means to meet increasing energy demand, while reducing greenhouse gas emissions and environmental pollution. LNG is considered a flexible and clean energy conversion means, helping Vietnam to switch from traditional fuel sources to cleaner energy sources.

Tien Phong Newspaper

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