Suitable approach for LNG-to-power development in Vietnam
LNG-fired power will account for around 15% of Vietnam’s total electricity supply by 2030, according to the country’s newly-approved power development plan, or PDP VIII.
Under the plan, realizing the goal of developing gas-fired power, including LNG projects, is essential to promote the development of the LNG market in Vietnam in an efficient, competitive, and sustainable manner. When the LNG industry develops smoothly, it will make contributions to the country's energy security and sustainable development.

An LNG complex of PV Gas in Ba Ria-Vung Tau province, southern Vietnam. It includes a terminal and facilities for storage and regasification. Photo courtesy of PV Gas.
According to analysts, due to stable, continuous and flexible operation, gas-to-power plants in the country need to be maintained to serve as a major source to support renewable energy.
The domestic gas supply in Vietnam will decrease in the coming years while the newly introduced gas fields cannot make up for the shortage, according to forecasts and analyses. Therefore, importing LNG is inevitable.
To support the LNG market’s development, a number of issues related to infrastructure and policy need to be addressed.
It is necessary to develop a modern LNG terminal warehouse system of international standards, with facilities at strategic locations, capable of handling large LNG carriers; and build a storage and distribution system which includes smaller storage facilities, specialized vehicles for transporting LNG, and distribution stations. They aim to serve power customers, industrial parks, and households.
The development of the LNG sector needs to go hand in hand with safety management and environmental protection. Therefore, related regulations must be observed.
For example, importing LNG needs to be planned synchronously with the ability to take it in and distribute the gas to buyers. It is advisable to make use of the existing gas distribution system to optimize investment costs. Since most LNG will be used for power generation, optimizing investment will help keep electricity production costs stable and appropriate. Saving costs will in turn support the LNG market further.
PDP VIII outlines that 13 new LNG power plants with a total capacity of 22,400 megawatts will be built by 2030, and two more with a combined capacity of 3,000 MW by 2035.
Determining the project locations is based on regional needs and balancing developments in the north, north-central region, and the south.
Under current regulations on construction and investment, investors of LNG power plants have to build separate LNG terminals. The formula for this construction is one power center or plant must go with one LNG terminal with a floating storage regasification unit (FSRU).
This means there would be so many such facilities along the coastline of Vietnam. This sounds like economies of scale would be ignored, which would mean higher costs.
In terms of economies of scale, if a major LNG hub is built, the question of higher costs could be solved.
According to a representative of the Vietnam Gas Corporation (PV Gas), based on location planning of LNG power plants outlined by PDP VIII and demand for LNG import (forecasted: annual import will be 14.46 million tons by 2030; 1.92 million tons by 2035), a PV Gas study shows that Vietnam needs LNG hubs to be able to develop the LNG sector efficiently.
That is, large-sized LNG hubs will serve as the backbone with systems of pipelines. LNG power plants will receive the gas from the pipelines. Different means of transport (trains, trucks, ships) will also serve different groups of customers, including household consumers.
According to PV Gas, it is expected that just three LNG hubs can be a suitable answer. Each one should have an annual capacity of 3-6 million tons (designed to be able to reach 10 million tons to serve expansion purposes. The three locations should be Thi Vai in the southern province of Ba Ria-Vung Tau; Son My in the south-central province of Binh Thuan; the third in the north or the north-central region.
Among them, the major LNG Thi Vai terminal of PV Gas is already in place for a trial run, followed by official operations. The Son My LNG terminal, invested by U.S. energy firm AES, is in the process of completing investment procedures.

Gas storage facilities of PV Gas in Ba Ria-Vung Tau province, southern Vietnam. Photo courtesy of the firm.
The Vietnamese government should place the leading role in the market into the hands of Petrovietnam or PV Gas, the leading players in the sector. They sufficiently have the financial capacity, expertise, experience, and infrastructure facilities to take the role.
PV Gas currently owns and operates more than 1,500 km of gas pipelines and a system of storage facilities, terminals, distribution centers, and gas processing plants.
In other countries, leading state-run oil and gas corporations also take the leading role in developing the sector. For example, Thailand has PTT Group; Singapore has Singapore LNG Corporation (SLNG); South Korea has KOGAS; and Japan has Tokyo Gas and Osaka Gas, just to mention some.
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