LNG-fired electricity unlikely in 2024: PV Gas

It is unlikely that LNG can be sold to power plants for electricity generation in 2024, “as the mechanism for LNG-fired power remains complicated,” said PV Gas CEO Pham Van Phong.

At a meeting reviewing the October performance of parent firm Petrovietnam, Phong said gas consumption has been declining amid low priority accorded to gas-fired power. In particular, gas consumption in 2023 was projected to fall 18% year-on-year and downtrend is expected to continue next year, he added.

PV Gas, listed on the Ho Chi Minh Stock Exchange (HoSE) as GAS, is expected to deliver 6.3 billion cubic meters of gas to shore in 2024, lower than the planned 7.7 billion cubic meters in 2023, Phong said.

The meeting highlighted achievements of the oil-gas sector in the first 10 months of this year, including inauguration of the LNG Thi Vai terminal by PV Gas, the first of its kind in Vietnam. The facility, with an annual capacity of one million tons, is expected to facilitate the country’s energy transition and diversification process.

The first steps have been taken to install power generators and gas turbines at the Nhon Trach 3 power plant, moving closer towards commercial operation of Nhon Trach 3 power plant in the last quarter of 2024 and Nhon Trach 4 power plant in the second quarter of 2025. These are the first LNG-fired power factories in Vietnam.

At another meeting between leaders of PV Gas and the National Load Dispatch Center (NLDC) under state utility Vietnam Electricity (EVN), PV Gas expressed concerns about a sharp fall in global coal prices in 2024, exerting great pressure on gas prices and consequentially, gas-fired power.

In reply, the NLDC said that demand for power would remain high, especially during the dry season, and called on PV Gas to stock enough LNG for gas-fired power plants.