Page 8 - GLNG Week 37 2021

GLNG COMMENTARY GLNG

Vietnam sets date for

first LNG imports

The country is banking on foreign supplies of the

cleaner-burning fuel to underpin both economic

expansion and decarbonisation

POLICY THE Vietnamese government has revealed that Platts citing an unnamed source in June that
the country will receive its first liquefied natural year as saying the facility would have an ini-
WHAT: gas (LNG) imports from next year. tial capacity of 2-3mn tpy, with the potential to
Vietnam is set to begin The date marks a 10-year delay on the coun- expand to 6mn tpy.
importing LNG in 2022. try’s original import timeline, with PetroViet- The first phase of the Thi Vai project, mean-
nam’s Hai Linh terminal having initially been while, will have 1mn tpy of capacity and is
WHY: slated to begin operations in 2012. However, reportedly on track to come online next year. It
Power sector demand is once imports do begin demand for the fuel is is not clear whether both projects or just one will
soaring and domestic gas expected to ramp up quickly in line with an come on stream.
production is in decline. anticipated uptick in power demand. Dien said LNG was “one of the most impor-
The power sector’s demand for foreign gas tant solutions” to ensuring the country’s energy
WHAT NEXT: supplies will be driven by economic expansion, security amid declining domestic gas produc-
The country’s LNG declining domestic gas production and the tion. The country’s gas output has declined from
demand could grow to growing movement towards decarbonisation. a peak of 10.3bn cubic metres in 2015 to 8.7 bcm
15mn tpy by 2035. Vietnamese Minister of Industry and Trade in 2020, according to BP’s Statistical Review of
Nguyen Hong Dien, who revealed the 2022 tar- World Energy.
get on September 10, said the country’s LNG “Vietnam is currently conducting research,
demand was expected to grow to 15mn tonnes searching for markets and accelerating con-
per year (tpy) by 2035. struction of terminal infrastructure to be ready
to receive and import LNG,” the minister said.
Demand driver Highlighting the government’s approval of the
Vietnam’s overall power demand is being driven Son My LNG import terminal, Dien said the
by the country’s robust economic growth, with government was considering “many other pro-
the World Bank projecting that GDP will expand jects proposed by foreign enterprises”.
by 4.8% this year and by up to 6.5-7% from 2022 The date marks
onward. New projects
Indeed, the government has outlined plans State-owned PetroVietnam agreed in October a 10-year delay
to expanded power generation capacity from 2020 to a joint venture with US power utility AES on the country’s
69,300 MW in 2020 to 137,700 MW in 2030 and to develop the $1.4bn Son My LNG project. The
233,800 MW in 2040. As part of this push, LNG- terminal – which will have an initial capacity of original import
fired power is predicted to grow to 4,100 MW by 3mn tpy of LNG, before being expanded to 6mn
2025 and 59,000 MW by 2045. tpy – will supply the planned Son My 1 and Son timeline.
Speaking in a video address uploaded to You- My 2 power plants from 2024.
Tube ahead of the 10th LNG Producer-Con- Several other projects involving foreign inves-
sumer Conference on October 5, Dien said tors are also in the works.
Vietnam’s LNG demand was expected to climb Malaysian contractor Jaks Resources
to 5mn tpy in 2025, 10mn tpy by 2030 and 15mn announced on September 13 that it had signed
tpy by 2035. a non-binding and non-exclusive memoran-
The country has two import terminals on dum of understanding (MoU) with Vietnamese
the verge of operational readiness – the repeat- developer T&T Group to explore the poten-
edly delayed Hai Linh facility and state-owned tial of collaborating on the 1,500-MW Quang
PV Gas’ Thi Vai terminal. Both terminals are Ninh 2 LNG-to-power project in Quang Ninh
located in the country’s southern province of Ba Province.
Ria-Vung Tau. Jaks said it would serve as a “strategic inves-
Work on Hai Linh was reportedly completed tor” that would be responsible for engineer-
in 2020, with industry news outlet S&P Global ing, procurement and construction (EPC)

P8 www. NEWSBASE .com Week 37 17•September•2021