Vietnam to start construction of LNG terminal in October to serve energy transition
The terminal will supply gas to electricity generation in Vietnam as the country strives to reduce reliance on coal.
State-run PetroVietnam Gas Corporation (PV GAS) and its partners plan to start construction of one of the country’s first LNG terminals in southern Vietnam in late October, S&P Global Platts has reported, citing an official with parent company PetroVietnam.
A gas facility by PetroVietnam Gas (PV GAS). Photo: VOV
|
The Thi Vai LNG terminal is one of at least two new LNG import facilities under development that would make Vietnam the newest LNG importing country in Southeast Asia.
Gas distribution company PV Gas is in process of reviewing the remaining design issues of the LNG terminal with consultants and contractors before construction can begin, the official said.
The Thi Vai terminal is expected to be operational in the third quarter of 2022, the official said on the sidelines of the Vietnam LNG-to-Power Summit 2019 in Hanoi on September 19.
It will have a capacity of 1 million metric ton (mt)/year in its first phase in 2022, which will be raised to 3 million mt/year by 2023 in the second phase of development.
On June 24, PV Gas awarded an engineering, procurement and construction contract to build the Thi Vai terminal to South Korea’s Samsung C&T Corp and PetroVietnam Technical Services Corp.
On the same day, it signed an agreement to supply LNG from Thi Vai to PetroVietnam Power’s proposed Nhon Trach 3 and Nhon Trach 4 power plants in southern Dong Nai province with a capacity of 600 MW each.
Vietnam Oil and Gas Group (PetroVietnam) – the national oil company, through its gas arm PV Gas, supplies natural gas to meet 30% of Vietnam’s electricity demand and 70% of its fertilizer needs.
Vietnam held 24.7 trillion cubic feet of proved natural gas reserves at the end of 2016, up from 6.8 trillion cubic feet (Tcf) in 2011, of which half was located in the northern deep-water areas of the Song Hong basin, according to the US Energy Information Administration (EIA).
It currently does not import any natural gas despite growing gas demand for power generation in southern Vietnam and it produced 375 billion cubic feet of dry natural gas in 2016, which was fully consumed domestically, the EIA said citing official data.
In 2014, PV Gas signed two LNG sale and purchase agreements with Russia’s Gazprom Marketing & Trading and Anglo Dutch Shell for deliveries into Thi Vai LNG terminal. This was followed by two preliminary LNG supply agreements with Virginia-based AES Group and Alaska Gasline Development Corp in November 2017.
The US EIA says a second terminal, Son My LNG, is being planned with multiple phases, the first of which will have a capacity of 86 billion cubic feet (Bcf)/year.
Earlier this week, Australia’s LNG Ltd signed a 20-year SPA to supply 2 million mt/year of LNG from its proposed Magnolia LNG export terminal in Louisiana to a gas-to-power project in Vietnam. Under the deal, LNG will be sold to Delta Offshore Energy to fuel a 3,200 MW combined-cycle power plant located in the southern province of Bac Lieu.
17:35, 2024/11/23
Hanoi gears up for Tet: ensuring a steady supply of safe food
The city will work closely with other cities and provinces to ensure that consumers in the capital have access to safe food and agricultural products.
14:47, 2024/11/15
Year-end hiring spree as Hanoi companies ramp up recruiting
In the fourth quarter, many major holidays will lead to increased hiring as companies finalize orders and anticipate new projects.
13:33, 2024/11/14
Vietnam's digital economy expected to grow big in 2024
E-commerce is expected to reach US$22 billion in 2024, leading the growth of Vietnam's digital economy.
22:03, 2024/11/13
Incheon-Hanoi conference marks milestone in tourism development cooperation
Hanoi and South Korea's Incheon aim to increase their visibility among Vietnamese and international travelers through a series of events to promote MICE (Meetings, Incentives, Conferences and Exhibitions) tourism and medical tourism to Vietnam.
14:21, 2024/11/12
Hanoi's businesses place focus on digital transformation
Businesses need to utilize digital technologies to streamline operations, increase efficiency, and provide greater value to customers.
03:04, 2024/11/08
Semiconductor market reaches $18.2 billion: SEMIEXPO Vietnam 2024
Vietnam a key player in tackling the challenges facing the global semiconductor supply chain.
- Hanoi DigiTech 2024 connects businesses through digital products
- Hanoi steps up investment promotion
- Hiring multitaskers: Priority for Hanoi companies
- Hanoi seeks partnerships to build skilled workforce for digital transformation
- Hanoi to host Vietnam-Asia Smart City Summit 2024
- Vietnamese spend $8.9 billion on ecommerce