Viet Nam to increase imports of LNG by 2025
Viet Nam to increase imports of LNG by 2025
Sharply decreasing Liquid Natural Gas (LNG) output and increasing prices of new gas resources are forcing Viet Nam to look to increase LNG imports.
The country is expected to import five million tonnes of LNG by 2025. Kater, the figure is expected to increase to 11 million tonnes by 2030 and 13.9 million tonnes by 2035.
By the end of this year, the Việt Nam National Oil and Gas Group (PetroVietnam) will have supplied more than 100 billion cu.m of gases. Gas for electricity production accounted for 90 per cent of the country’s total gas output, generating around 30 per cent of total power output. Gas for fertilizer production contributed 70 per cent of the total fertilizer demand.
Vu Dao Minh, deputy head of the PetroVietnam’s Department of Oil and Gas Exploitation,. said the group has been active in promoting development progress of potential gas mines in the basins of Cuu Long, Nam Con Son, the central and west southern regions. The annual gas output has been around 10 billion cu.m.
However, Minh said that after the year of 2020, current gas mine output will be reduced, thus affecting the gas supply. In addition, the development of new gas mines will face the high level of impurities and difficult deep water locations. The factors will affect exploitation, collection and processing costs.
It is forecast that the country’s total gas supply will be more than 268 billion cu.m--while its total demand will be over 344 billion cu.m in the 2017-35 period, he said, adding that the supply would not be enough for the development of new power plants under the master electricity planning VII.
He said the country needs to develop new gas resources while importing LNG to ensure its demand.
This would be a challenge for the synchronous development of the gas industry. It requires suitable mechanisms and policies to encourage investment in the sector. The Government should stipulate different gas prices to customers in the sectors of electricity, petrochemical and industry, he added.
He noted that the policies could promote gas market development, ensuring investment project effectiveness as well as contributing to energy security.
Deputy Minister of Industry and Trade, Hoàng Quốc Vượng, said the ministry will continue to review and supplement Việt Nam’s gas industry master plan by 2020 with a vision to 2035.
Vượng also required PetroVietnam to propose suitable policies for gas prices to ensure benefits to the Government, businesses and people as a pre-condition for the development of the gas industry.
