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    LNG to Fuel Vietnamese Plants

Summary

PV Gas will supply regasified LNG to PV Power's power plants.

by: Shardul Sharma

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Natural Gas and LNG Latest & Breaking News, Asia/Oceania, Security of Supply, Corporate, Import/Export, Liquified Natural Gas (LNG), Infrastructure, News By Country, Vietnam

LNG to Fuel Vietnamese Plants

PetroVietnam Gas (PV Gas) has signed an agreement to supply regasified LNG to PetroVietnam Power Corporation’s (PV Power) Nhon Trach 3 and 4 power plants, PV Gas said January 10.

The power plants, with a combined capacity of 1.5 GW, will the first in the country to use imported gas for power generation, PV Gas added.

Vietnam’s first LNG receiving terminal, Thi Vai, is being developed by LNG Vietnam, in which PV Gas holds 51% stake. LNG Vietnam was established in August 2016. In addition to PV Gas, Bitexco owns 39% and Tokyo Gas 10% stake in LNG Vietnam.

The Thi Vai terminal will initially have a capacity of 1mn mt/yr and is expected to come online by 2021-2022, PV Gas said, adding that the terminal’s capacity can go up to 3mn mt/yr by 2025. The feasibility study and front-end engineering design (Feed) for the Thi Vai LNG terminal located in the southern province of Ba Ria-Vung Tau, has been completed.

Vietnam is also looking to build a second LNG terminal, Son My, which is expected to be ready between 2023 and 2025.

PV Gas stated that domestic gas supplies are shrinking, and Vietnam will face shortage of over 2bn m3/yr by 2023 which is expected to go up to 7bn m3/yr by 2030 and 9bn m3/yr by 2035. The company said LNG will play an important role in bridging the supply gap.

Under the revised National Power Development Plan VII, Vietnam is looking to increase its total power generation capacity to around 129.5 GW by 2030. Of this 19 GW will come from power plants fired by gas.