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Vietnam needs more and more liquid gas
By Tuan Minh 11:26, 2016/12/25
Vietnam`s Liquid Natural Gas (LNG) output is sharply decreasing and increasing prices of new gas resources are forcing Vietnam to look to rise LNG imports by 2025.
 

By the end of this year, the Vietnam National Oil and Gas Group (PetroVietnam) will have supplied more than 100 billion cu.m of gas. Gas for electricity production accounted for 90 percent of the country’s total gas output, generating around 30 percent of total power output. Gas for fertilizer production contributed 70 percent of the total fertilizer demand. The country is expected to import five million tonnes of LNG by 2025. The figure is expected to increase to 11 million tonnes by 2030 and 13.9 million tonnes by 2035.

Vu Dao Minh, deputy head of PetroVietnam’s Department of Oil and Gas Exploitation, said the group has been active in promoting the developmental progress of potential gas mines in the basins of Cuu Long, Nam Con Son, and the central and south west 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 gas supply. In addition, the development of new gas mines will face high levels of impurities and difficult deep water locations. These 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 plan VII. He said the country needs to develop new gas resources while importing LNG to ensure demand is met.

This would be a challenge for the synchronous development of the gas industry. It requires suitable mechanisms and policies to encourage investment into the sector. The Government should stipulate different gas prices to customers in the sectors of electricity, petrochemical and industry. 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 Hoang Quoc Vuong said the ministry will continue to review and supplement Vietnam’s gas industry master plan by 2020 with a vision to 2035. Vuong also required that PetroVietnam 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. The nation’s first oil refinery has turned out 803,387 tonnes of products since it started trial operation in August, according to the Vietnam National Oil and Gas Group (PetroVietnam).
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