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PVN is studying to develop the infrastructural bases for LNG import

PVN is studying to develop the infrastructural bases for LNG import - 

The Vietnam Oil and Gas Group (PVN) informed that the Group is currently studying to search the markets and build infrastructural bases for importing liquefied natural gas (LNG) and studying to develop the gas pipelines for connecting the regions to form a national gas pipeline system of Vietnam.

Accordingly, the goal of PVN is to strive developing a fully worked-out gas industry, synchronizing all the gas phases (mining - collecting - transporting - processing - exporting, importing - storing – distributing and products) and providing 100% market share of domestic dry gas and at least 70% market share of LNG in the whole country.

On the other hand, PVN will focus on studying, seeking markets and building infrastructural bases (warehouses and ports) to import LNG after 2020, and at the same time on studying to build a national gas pipeline system.

Regarding gas prices, PVN will apply a reasonable price policy on a principle to ensure the harmonious interests between the state and businesses, people, as well as between the enterprises as a premise for strong developing gas industry in Vietnam.

As well known, in recent years, Vietnam did not have to import gas, but due to that domestic gas source more and more exhausted and will not guarantee demand, Vietnam must to import LNG in near future.

Therefore, the Resolution of the Central Committee of the Communist Party of Vietnam (55/NQ-TW) stated: "Attaching special importance to the rapid developing LNG fired thermal power projects (TPP), making the gas fired TPPs gradually to become an important power supply source to support regulating the power system"; "... Prioritizing investment in the technical infrastructural bases for LNG import and consumption of liquefied natural gas (LNG)". Developing infrastructural bases "capable to import LNG with about 8 billion m3 by 2030 and about 15 billion m3 by 2045".

Previously, in the development planning project of Gas Industry in Vietnam to 2025, with outlook to 2035, approved in early 2017, the Prime Minister also asked: "It is necessary to study and search the markets and speed up building infrastructural bases for ready receiving imported LNG with an equivalent volume of gas from 1 to 4 billion m3/year for 2021-2025 period and from 6 to 10 billion m3/year for 2026 – 2035 period ".

The above imported LNG will be mainly for power generation in order to decrease coal fired TPPs with the goal to reduce emission of environmental pollutants, especially CO2.

The capacities, locations and commercial operations of LNG fired TPPs should be clearly defined in Power Development Planning VIII, but the above interprets show that it is evident to develop LNG-fired TPPs with a large scale in the future.

Therefore, Vietnam needs to have a strategy on synchronized infrastructural bases to import LNG in the medium and long terms.

According to calculations of energy experts, the total capacity of combined cycle gas turbines using imported LNG approved and proposed to be invested in the Southern and the Central Vietnam is up to over 40,000 MW, using imported LNG about 30 million tons/year.

Regarding the Northern region, the total current and planned capacities of power projects will not ensure adequate supply for the demand of the region additional demand due to not enough coal resource. So it is necessary to develop LNG fired TPPs in the Northern Vietnam in coming period.

PV.

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