Suitable approach for LNG-to-power development in Vietnam

By Hoang Hung
Mon, June 26, 2023 | 7:01 pm GMT+7

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.

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.

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.

Comments (0)
  • Read More
Vietnam mulls opening door for private investment in small modular reactors

Vietnam mulls opening door for private investment in small modular reactors

Vietnam’s Ministry of Industry and Trade has drafted a parliamentary resolution that, for the first time, would allow private companies to participate in the development of small modular nuclear reactors (SMRs).

Energy - Fri, October 17, 2025 | 4:37 pm GMT+7

Kido seeks buyer for remaining 49% stake in frozen food affiliate

Kido seeks buyer for remaining 49% stake in frozen food affiliate

Kido Group (HoSE: KDC), a leading food company in Vietnam, has approved a plan to divest the firm's remaining 49% stake in its affiliate Kido Frozen Food JSC (Kido Foods).

Companies - Fri, October 17, 2025 | 4:25 pm GMT+7

Le Ngoc Quang appointed Danang city's Party chief

Le Ngoc Quang appointed Danang city's Party chief

Le Ngoc Quang, a Party Central Committee member and Party chief of Quang Tri province, has been appointed Party chief of Danang for the 2025-2030 term - the highest position in the city, central Vietnam's economic hub.

Politics - Fri, October 17, 2025 | 4:17 pm GMT+7

T&T Group seeks to reshape north-central Vietnam’s urban landscape with major projects

T&T Group seeks to reshape north-central Vietnam’s urban landscape with major projects

Multi-sector conglomerate T&T Group is developing a model eco-urban complex in Ha Tinh province and plans to build a massive 236-hectare urban area in neighboring Nghe An, with an aim to reshape north-central Vietnam's urban landscape.

Investing - Fri, October 17, 2025 | 2:44 pm GMT+7

Toyota plans $359 mln plant expansion in northern Vietnam

Toyota plans $359 mln plant expansion in northern Vietnam

Toyota Motor Vietnam (TMV) plans to invest about VND9.46 trillion ($359.2 million) in the first phase of its plant expansion project in Phu Tho province.

Investing - Fri, October 17, 2025 | 2:09 pm GMT+7

PVI Insurance sees 9-month profit before tax more than doubling

PVI Insurance sees 9-month profit before tax more than doubling

PVI Insurance has reaffirmed its position as the No. 1 non-life insurer in Vietnam, with total revenue increasing nearly 1.4 times in the first nine months of 2025 and pre-tax profit more than doubling year-on-year - surpassing its full-year targets for both revenue and profit.

Companies - Fri, October 17, 2025 | 9:08 am GMT+7

Vingroup to develop 4,600ha coastal urban project in northern Vietnam

Vingroup to develop 4,600ha coastal urban project in northern Vietnam

A consortium of Vingroup (HoSE: VIC) and its real estate arm Vinhomes (HoSE: VHM) will develop a 4,600-hectare coastal urban complex in Ha An ward, Quang Ninh province, following local authorities’ approval of a zoning plan.

Real Estate - Fri, October 17, 2025 | 8:30 am GMT+7

Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesia resumes int’l carbon trading after 4-year hiatus

Indonesian President Prabowo Subianto has issued a new decree to restart international carbon emissions trading after a four-year hiatus.

Southeast Asia - Thu, October 16, 2025 | 9:23 pm GMT+7

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors seek 2-year delay for $2.56 bln LNG power project in northern Vietnam, citing equipment hurdles

Investors of a $2.56 billion LNG-fired power plant in Hung Yen province have proposed delaying the project’s commercial operation schedule by two years due to difficulties securing key equipment.

Energy - Thu, October 16, 2025 | 9:04 pm GMT+7

Vietnam to soon raise taxpayers' personal deduction: official

Vietnam to soon raise taxpayers' personal deduction: official

The personal income tax deduction in Vietnam is "very likely" to increase to VND21.7 million ($823,940) per month, including VND15.5 million (588,530) for the taxpayer and VND6.2 million ($235,410) for each dependent.

Finance - Thu, October 16, 2025 | 6:25 pm GMT+7

Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam

Business confidence climbs as reforms gain traction amid global headwinds: EuroCham Vietnam

The index climbed to 66.5, surpassing pre-tariffs level and reaching its highest in three years – showcasing resilience and adaptability amid global headwinds and evolving U.S. tariff pressures.

Economy - Thu, October 16, 2025 | 4:36 pm GMT+7

Vietnam's stock market watchdog suspends two Grant Thornton auditors

Vietnam's stock market watchdog suspends two Grant Thornton auditors

Vietnam's State Securities Commission (SSC) has suspended two auditors from Grant Thornton Vietnam after determining that the 2024 audited financial statements of Saigon Water Infrastructure Corporation (HoSE: SII) failed to meet required standards.

Finance - Thu, October 16, 2025 | 3:35 pm GMT+7

Law No. 56 a major policy breakthrough for Vietnam's stock market development

Law No. 56 a major policy breakthrough for Vietnam's stock market development

The Law No. 56, effective January 1, 2025, is one of the major legal breakthroughs in recent years that will enhance the transparency and operational efficiency of the Vietnamese stock market.

Finance - Thu, October 16, 2025 | 2:30 pm GMT+7

WHA Group breaks ground on smart technology industrial zone in central Vietnam

WHA Group breaks ground on smart technology industrial zone in central Vietnam

Thailand's WHA Group on Tuesday broke ground on a world-class, modern, and environmentally friendly industrial zone in central Vietnam, namely the WHA Smart Technology Industrial Zone-Thanh Hoa.

Real Estate - Thu, October 16, 2025 | 2:00 pm GMT+7

Vietnam a key partner in Murphy Oil’s global strategy: exec

Vietnam a key partner in Murphy Oil’s global strategy: exec

Vietnam remains a key partner in Murphy Oil’s global business strategy, said Eric Hambly, the U.S. corporation's president and CEO.

Companies - Thu, October 16, 2025 | 12:06 pm GMT+7

VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center

VNPT, Qualcomm debut Vietnam’s 1st original design-based excellence center

State-owned Vietnam Posts and Telecommunications Group (VNPT) and Qualcomm have officially launched the VNPT-Qualcomm Excellence Center (VQEC), the first facility in the country to operate under an original design co-development model using Qualcomm’s core technologies.

Companies - Thu, October 16, 2025 | 8:41 am GMT+7