PVN aims to develop LNG import infrastructure in Vietnam

The Vietnam Oil and Gas Group (PetroVietnam, PVN) is studying the development of LNG import infrastructure and gas pipelines in Vietnam to meet rising gas demand, especially from the power sector. Many gas-fired power projects relying on LNG imports are expected to be developed in the country, requiring an import capacity of around 8 bcm/year by 2030 and around 15 bcm/year by 2045. According to the development planning project of Gas Industry in Vietnam to 2025, with outlook to 2035 (2017), the LNG import capacity should rise from 1 to 4 bcm/year over the 2021-2025 period to 6-10 bcm/year over the 2026-2035 period. Vietnam will have to define a strategy to synchronise the development of LNG import terminals and gas-fired power capacities in the medium and long terms.

In October 2019, PetroVietnam Gas (PV Gas), PVN's gas subsidiary, started to build its 1 Mt/year (1.35 bcm/year) Thi Vai LNG import terminal in the Ba Ria – Vung Tau province in southern Vietnam. The Thi Vai LNG project is expected to be completed in 2022 at an estimated cost of around US$285m. The project's capacity could be later raised in 2023. The Thi Vai LNG will supply gas to the Nhon Trach 3 and 4 gas-fired power plants and other industrial businesses, helping meet the rising gas and electricity demand in the south-east of Vietnam. PVN is also developing another 13 bcm/year LNG import terminal in Son My (Binh Thuan province) that could be commissioned in phases between 2023 and 2030.

In February 2020, the provincial authority (People’s Committee) of Bac Lieu approved the Bac Lieu LNG-to-Power project, developed by Delta Offshore Energy (DeltaOE) in Vinh Hau A, in the Hoa Binh District. The project comprises a 3.2 GW LNG-to-power CCGT power plant, an LNG floating storage and regasification unit (FSRU) and a 35 km gas pipeline. Total investment for the project is estimated at VND93,600bn (US$4bn), funded with 15% of equity and 85 % of loan.