Page 6 - AsiaElec Week 37 2021

AsiaElec COMMENTARY AsiaElec

Vietnam sets date for

first LNG imports

The country is banking on foreign supplies of the cleaner burning fuel to underpin both
economic expansion as well as its decarbonisation

GLOBAL THE Vietnamese government has revealed that LNG-fired power is predicted to grow to 4,100
the country will receive its first liquefied natural MW by 2025 and 59,000 MW by 2045.
gas (LNG) imports from next year. Speaking in a video address uploaded to
The date marks a 10-year delay on the coun- YouTube ahead of the 10th LNG Producer-Con-
try’s original import timeline, with PetroViet- sumer Conference on October 5, Dien said Viet-
nam’s Hai Linh terminal having initially been nam’s LNG demand was expected to climb to
slated to begin operations in 2012. However, 5mn tpy in 2025, 10mn tpy by 2030 and 15mn
once imports do begin demand for the fuel tpy by 2035.
is expected to ramp up quickly in line with an The country has two import terminals on
anticipated uptick in power demand. the verge of operational readiness – the repeat-
The power sector’s demand for foreign gas edly delayed Hai Linh facility and state-owned
supplies will be driven by economic expansion, PV Gas’ Thi Vai terminal. Both terminals are
declining domestic gas production and the located in the country’s southern province of Ba
growing movement towards decarbonisation. Ria-Vung Tau.
Vietnamese Minister of Industry and Trade Work on Hai Linh was reportedly completed
Nguyen Hong Dien, who revealed the 2022 tar- in 2020, with industry news outlet S&P Global
get on September 10, said the country’s LNG Platts citing an unnamed source in June that
demand was expected to grow to 15mn tonnes year as saying the facility would have an ini-
per year (tpy) by 2035. tial capacity of 2-3mn tpy, with the potential to
expand to 6mn tpy.
Demand driver The first phase of the Thi Vai project, mean-
Vietnam’s overall power demand is being driven while, will have 1mn tpy of capacity and is
by the country’s robust economic growth, with reportedly on track to come online next year. It
the World Bank projecting that GDP will expand is not clear whether both projects or just one will
by 4.8% this year and by up to 6.5-7% from 2022 come on stream.
onward. Dien said LNG was “one of the most impor-
Indeed, the government has outlined plans tant solutions” to ensuring the country’s energy
to expanded power generation capacity from security amid declining domestic gas produc-
69,300 MW in 2020 to 137,700 MW in 2030 tion. The country’s gas output has declined from
and 233,800 MW in 2040. As part of this push, a peak of 10.3bn cubic metres in 2015 to 8.7 bcm

P6 www. NEWSBASE .com Week 37 15•September•2021