RIM Market News >  Asian Viewpoints

Uncertainty about LNG business in Vietnam

2019/08/09 12:00

Vietnam is expected to start importing liquefied natural gas (LNG) as a fuel for power generation, as domestic natural gas production is expected to decline in the near future. In Vietnam, a country with a population of 100 million, it is an urgent task to promote power generation business to enhance the standard of living and support economic growth. At the LNG Vietnam 2019 Conference organized by Gas Academy held in Ho Chi Minh City on July 23-24, Rim Intelligence interviewed local industry players about the LNG business in Vietnam. According to the survey results of the Vietnamese government, Vietnam will be short of 19,000 to 20,000 MW of electricity from around 2020. The government plans to expand gas-fired power plants in the future to deal with environmental concerns. The Ministry of Industry and Trade (MOIT) intends to build a new gas-fired power plants consisting of 10 units of 750 MW each and 1 facility of 2,000 MW. Of these, five of the 750 MW facilities and the 2,000 MW facility would use LNG as fuel. With these plans, Vietnam considers constructing an LNG receiving terminal. Specifically, 6 onshore LNG terminals and a floating storage and regasification unit (FSRU) are expected to be set up from 2020 to 2030. Construction of the Thi VaiL terminal (capacity of 1-3 mil mt/year) would take place from 2020 to 2022, the South West terminal (1 mil mt/year) from 2021 to 2030, the South East terminal (4-6 mil mt/year), the Son My terminal (6 mil mt/year) from 2022 to 2025, the Hai Phong terminal (1-3 mil mt/year), the Khanh Hoa terminal from 2030 to 2035, and the FSRU (200,000-500,000mt/year from 2026 to 2030. However, the feasibility and construction timing of these plans are uncertain as foreign investments are required.

Singapore : Energy Desk  Satoshi Hagimoto  +65-6345-9894
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