Page 8 - AsianOil Week 37 2021

AsianOil SOUTHEAST ASIA AsianOil

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

COMMENTARY 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
WHAT: The date marks a 10-year delay on the coun- YouTube ahead of the 10th LNG Producer-Con-
Vietnam is set to begin try’s original import timeline, with PetroViet- sumer Conference on October 5, Dien said Viet-
importing LNG in 2022. 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
WHY: once imports do begin demand for the fuel tpy by 2035.
Power sector demand is is expected to ramp up quickly in line with an The country has two import terminals on
soaring and domestic gas anticipated uptick in power demand. the verge of operational readiness – the repeat-
production is in decline. 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
WHAT NEXT: declining domestic gas production and the located in the country’s southern province of Ba
The country’s LNG growing movement towards decarbonisation. Ria-Vung Tau.
demand could grow to Vietnamese Minister of Industry and Trade Work on Hai Linh was reportedly completed
15mn tpy by 2035. 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 year
demand was expected to grow to 15mn tonnes as saying the facility would have an initial capac-
per year (tpy) by 2035. ity 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

P8 www. NEWSBASE .com Week 37 16•September•2021