Vietnam receives first LNG cargo, prepares terminal test run

Vietnam's first cargo of liquefied natural gas (LNG) was pumped into the Thi Vai LNG Terminal Monday, marking a milestone in the country’s clean energy transition.

Nguyen Thanh Binh, chairman of PV Gas, the terminal’s project investor, said that a new chapter has been opened in Vietnam’s gas sector.

Global oil giant Shell provided the first shipment and LNG carrier Maran Gas Achilles pumped it into the terminal located in the southern province of Ba Ria-Vung Tau.

This first batch - almost 70,000 tons - will serve the LNG terminal’s test run to be followed later by commercial operation.

Vietnam has had no operating LNG power plants to date. However, this is about to change as the government discourages coal-fired power generation, which currently supplies about half of the nation’s output, in a bid to reduce pollution.

PDP VIII, the country’s newly-approved power development plan, estimates that Vietnam needs $134.7 billion to develop new power plants and grids between 2021 and 2030. The 2031-2050 period will require $399.2-523.1 billion – $364.4-511.2 billion for generation and $34.8-38.6 billion for transmission lines.

Among power generation sources, coal will account for 20.5% by 2030, down from almost 29% in 2020, while gas will make up 21.8%, up from 10.2%.

PV Gas’ Thi Vai LNG Terminal, the first and largest LNG terminal operational in Vietnam, will have a phase one capacity of one million tons per year that will expand later to 3-6 million tons.

Once completed, the system will replenish the supply of about 1.4 billion m3 of gas supply to consumers such as Nhon Trach 3 and 4 power plants and industrial customers. It will also offset the shortage of gas in the country after 2023.

PV Power’s Nhon Trach 3 and 4 power plants, with a combined capacity of 1.6 GW, are Vietnam’s first LNG-to-power projects. These are under construction in the southern province of Dong Nai bordering HCMC.

Nhon Trach 3 and Nhon Trach 4 are set to start generation in the fourth quarter next year and the second quarter of 2025, respectively, according to PV Power.

Both PV Gas and PV Power are subsidiaries of Petrovietnam, the country’s state-run oil and gas group.